Question: Having Fun Party Supplies has implemented a new ordering system and plans to order themed birthday party sets using a periodic review inventory system. Given
Having Fun Party Supplies has implemented a new ordering system and plans to order themed birthday party sets using a periodic review inventory system. Given the information below for various products calculate the information needed. A product's fixed cost of ordering is expected to be $ per order using the automated system; the historical data shows that demand for the product is set per month with a standard deviation of sets per month. The inventory holding rate is per year, and each set costs $ and lead time is month, the value corresponding to the target fill rate during the lead time is Given this information calculate the optimal review interval in months assume one year is weeks, and one month is four weeks, round the results to three decimal points eg abc.cde
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