Lead time

,4

weeks\ Cringing cost

,30%

per year\ Purchase price, delivered =

$60

per case\ Replenishment order cost

=$40

per order\ Srockout cost

,$10

per case\ Probability of being in stock during the\ lead time

=85%

\ The manufecturer uses ROP method to control the inventory of this item. The manuficturer operates 52 weeks a yeare\ a. What is the economic order quantity?\ b. What is the reorder point?\ c. What's the expected number of units out of stock annually?\ d. What is the annual service level?\ C. What's the total annual cost including annual fixed ordering cost, inventory holding cost, and stockout cost?\ If the lead time is normally distributed with a standard deviation of 0.5 weeks, what's the ROP?

Lead time 4 weeks Cringing cost 30% per year Purchase price, delivered =$60 per case Replenishment order cost =$40 per order Stockout cost $10 per case Probability of being in stock during the lead time $5% The manuficturer uses ROP method to control the inventory of this item. The manuficturer operates 52 weeks a yeare a. What is the economic order quantity? b. What is the reorder point? c. What's the expected number of units out of stock annually? d. What is the annual service level? C. What's the total annual cost including annual fixed ordering cost, inventory holding cost, and stockout cost? 1. If the lead time is normally distributed with a standard deviation of 0.5 weeks, what's the ROP