Question: Problem 2 . A Q System Judy uses a continuous review system ( Q system ) to manage inventory for Ipad at Bestbuy store. Judy
Problem A Q System
Judy uses a continuous review system Q system to manage inventory for Ipad at Bestbuy store. Judy collected the following numbers based on her observation:
Demand unitswk assume weeks per year
Ordering and setup cost S $order
Holding cost H $unityear
Lead time L weeks
Standard deviation in weekly demand units
Cycleservice level
a What is the EOQ for Ipad?
b What is the desired safety stock?
c What is the desired reorder point R
d Suppose that Bestbuys current policy is Q and R How much will Bestbuy save in total cost if your EOQ and Rvalues are implemented?
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