Question: Please use the data below to answer this question. I need to check my work. Thanks! Regional distributors are currently using continuous review inventory policy.

Please use the data below to answer this question. I need to check my work. Thanks!

  1. Regional distributors are currently using continuous review inventory policy. Compute and describe their inventory management policy and associated cost. Ignore inbound and outbound transportation cost. Provide answers and calculations for order quantity, demand during lead time, safety stock, average inventory level, inventory holding cost per week, ordering cost per week, and total cost per week.

Please explain the answers.

Atlanta

Order Quantity:

Demand during lead time:

Safety Stock:

Average inventory level:

Inventory holding cost per week:

Ordering cost per week:

Total cost per week:

Boston

Order Quantity:

Demand during lead time:

Safety Stock:

Average inventory level:

Inventory holding cost per week:

Ordering cost per week:

Total cost per week:

Chicago

Order Quantity:

Demand during lead time:

Safety Stock:

Average inventory level:

Inventory holding cost per week:

Ordering cost per week:

Total cost per week:

Dallas

Order Quantity:

Demand during lead time:

Safety Stock:

Average inventory level:

Inventory holding cost per week:

Ordering cost per week:

Total cost per week:

LA

Order Quantity:

Demand during lead time:

Safety Stock:

Average inventory level:

Inventory holding cost per week:

Ordering cost per week:

Total cost per week:

The data:

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