Mountain Man, a sporting goods store, is trying to figure out continuous review order policy for infuser water bottle The bottle has following characteristics Length of a year 52 weeks Demand per week (d) 50 units per week Supply (ordering setup) cost (S) 77 per order Holding cost (H) 10 per unit p...

To calculate the values required for the continuous review order policy a Economic Order Quantity EO ...

Mountain Man, a sporting goods store, is trying to figure out continuous review order policy for infuser

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Mountain Man, a sporting goods store, is trying to figure out continuous review order policy for infuser water bottle. The bottle has following characteristics:

Length of a year 52 weeks
Demand per week (d) 50 units per week
Supply (ordering/setup) cost (S) 77 per order
Holding cost (H) 10 per unit per year
Lead-time (L) 3 weeks
Standard deviation of weekly demand (_t) 6 units
Cycle-service level (z) 91 %

a. What is the EOQ for the bottle?

b. What is the desired safety stock?

c. What is the reorder point?

d. What is the total inventory costs for the bottle for Mountain Man?

e. What are the cost implications if the current policy for bottle is Q = 350 and R = 190?

Posted Date: May 11, 2024 02:00 AM

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Mountain Man, a sporting goods store, is trying to figure out continuous review order policy for infuser

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