PLEASE ANSWER #30

#21 has already been completed, only included to go with #30

21. A company begins a review of ordering policies for its continuous review system by checking the cur- rent policies for a sample of SKUs. Following are the characteristics of one item. Demand (D) = 64 units/week (Assume 52 weeks per year) Ordering or setup cost (S) = $50/order = $ Holding cost (H) = $13/unit/year Lead time (L) = 2 weeks Standard deviation of weekly demand 12 units Cycle-service level = 88 percent a. What is the EOQ for this item? b. What is the desired safety stock? c. What is the reorder point? d. What are the cost implications if the current policy for this item is Q = 200 and R = 180? a 30. Using the same information as in Problem 21, develop the best policies for a periodic review system. a. What value of P gives the same approximate number of orders per year as the EOQ? Round to the nearest week. b. What safety stock and target inventory level provide an 88 percent cycle-service level? fhan