Question: GVTech Enterprises operate on a continuous review inventory control system for one of its SKUs and manages inventory over a 4 8 week business year.
GVTech Enterprises operate on a continuous review inventory control system for one of its SKUs and manages inventory over a week business year. The following details are provided for this item:
Annual demand: units
Ordering cost: $ per order
Holding cost: $ per unit per year
Average lead time: week
Standard deviation of weekly demand: units
Determine the Reorder Point ROP needed to maintain a service level, rounding to the nearest whole number.
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