Question: I need help solving this problem Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW attempts to stock enough items

I need help solving this problem I need help solving this problem Retailers
Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW attempts to stock enough items for a 98 percent service probability A stainless steel knife set is one item it stocks. Demand (2.100 sets per yean is relatively stable over the entire year Whenever new stock is ordered, a buyer must assure that numbers are correct for stock on hand and then phone in a new order. The total cost involved to place an order is about $11. RW figures that holding inventory in stock and paying for interest on borrowed capital insurance, and so on, add up to about $10 holding cost per unit per year Analysis of the past data shows that the standard deviation of demand from retailers is about five units per day for a 365-day year Lead time to get the order is seven days a. What is the economic order quantity? (Round your answer to the nearest whole number.) Economic order quantity sets b. What is the reorder point? (Use Excel's NORMSINVO function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Reorder point sets

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!