Question: P Periodic Review System EOQ 400 P = Time Between Orders [Wks)-52*(EOO/D] Sigma sub P+L - sigma sub d SQRT(P.L) Desired Service Level (z -

P Periodic Review System EOQ 400 P = Time Between Orders [Wks)-52*(EOO/D] Sigma sub P+L - sigma sub d SQRT(P.L) Desired Service Level (z - 1.65) see chart p.597 9552 Safety Stock = z" sigma sub P+L Annual Holding Cost - H* (dber* PM2 Annual Ordering Cost Total Annual Cycle Inventory Cost Annual Cost of Holding Safety Stock - H * 55 Total P System Cost T - Target Inventory Level - d bar PIL)+5S

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