Question: need C, D, and F completed Use the Continuous Inventory Model and the data below to answer these six questions. Forecast of demanda = 36,000
Use the Continuous Inventory Model and the data below to answer these six questions. Forecast of demanda = 36,000 units per week Forecast error, std. dev. = 800 units per week Lead time = 2.5 weeks Lead time error", std. dev = 1.2 weeks Carrying cost = 20 % per year Purchase price, delivered = $65 per unit Replenishment order cost = $2,000 per order Stockout cost = $2 per unit EOQ = 24,000 units In-stock Probability during the lead time =95% Normally distributed a) What is s' (the standard deviation of demand during lead time)? (2 points) b) What is the average time between orders (in days)? (2 points) c) What is the average inventory level? (2 points) d) What are the annual holding costs? (2 points) e) What is the annual service level? (2 points) f) What are the annual stockout costs? (2 points)
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