Question: Pear Repairs uses a fixed order quantity system and operates 3 6 5 days a year. The annual demand for their tablet chargers is 1

Pear Repairs uses a fixed order quantity system and operates 365 days a year. The annual demand for their tablet chargers is 14,600 units. The ordering cost
is $40 per order and the annual holding cost is $3.00. They would like to achieve a cycle service level of 80 percent. Their lead time is 3 days with a standard
deviation of daily demand of 4 chargers. Each charger costs $11
f. What is the EOQ?
g. What is the Safety Stock?
h. What is the Reorder Point?
i. If they currently use a lot size of 500 chargers, what is their total cost?
j. If they use the EOQ as their lot size, how much would they be saving over using a lot size of 5000 chargers?
Don't forget to include the cost of holding the Safety Stock in your total cost formula!)
 Pear Repairs uses a fixed order quantity system and operates 365

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