Question: Please Help A store has collected the following information on one of its products: Demand = 4,500 units/year Standard deviation of weekly demand = 12
Please Help
A store has collected the following information on one of its products: Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% Lead-time = 2 weeks Number of weeks per year = 52 weeks If a firm uses the continuous review system to control the inventory, what would be the economic order quantity, total inventory costs, safety stock and reorder point? (use z=1.28) EOQ= V2DS/H TBO=EOQ/D * 12 T.C.= Q/2 *H + D/Q*S R=d*L + safety stock Safety stock=zOdLT OdLT =OJ VL Please show your work
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