Question: PLEASE ANSWER A-C BELOW CircuitVillage.com is a leading online electronics retailer that operate 365 days per year. Their new product, the SMELLINATOR electronic diaper disposal
PLEASE ANSWER A-C BELOW
CircuitVillage.com is a leading online electronics retailer that operate 365 days per year. Their new product, the SMELLINATOR electronic diaper disposal unit, is priced at $379 and has an annual demand of 9,000 units. The annual holding cost is $6 per unit per year and the ordering cost is $75 per order.
A. What is the Economic Order Quantity (EOQ) for this item?______units (Please round to the nearest whole number).
CircuitVillage strives to maintain a 95% service level (z=1.645). Assume the average daily demand for this item is 25 units and demand is normally distributed with a standard deviation of 1.3 units. The items are ordered from a regional warehouse. The average lead time of 7 days is normally distributed and has a standard deviation of 2.0 days.
B. What is the Safety Stock level required to meet CircuitVillage's 95% service level target?______units (Please round up to the next whole number)
C. What is the Reorder Point?_______units (Please round up to the next whole number)
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