Question: Please help solve, show your work. A company begins a review of ordering policies for its continuous review system by checking the current policies for

Please help solve, show your work. A company

Please help solve, show your work.

A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item: = = > Demand (D) = 92 units/week (Assume 51 weeks per year) > Ordering and setup cost (S) = $45/order > Holding cost (H) = $14/unit/year > Lead time (L) = 6 week(s) > Standard deviation of weekly demand = 23 units > Cycle-service level = 90 percent > EOQ = 174 units = Using the above information, develop the best policies for a periodic review system. Refer to the standard normal table for z-values. a. What value of P gives the same approximate number of orders per year as the EOQ? 2 weeks. (Enter your response rounded to the nearest whole number.) b. To provide a 90 percent cycle-service level, the average safety stock is 53 units. (Enter your response rounded to the nearest whole number.) To provide a 90 percent cycle-service level, the target inventory level is 789 units. (Enter your response rounded to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!