Problem $7-24($Algo$)$

You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business $300$ days per year. One of your most important items experiences demand of $23$ units per day. normally distributed with a standard deviation of $2$ units per day. You experience a lead time on orders from your supplier of five days with a standard deviation of one day. If you order $2,900$ units or less, you pay the supplier $$6\mathrm{.}90$ per unit. Orders of $2,900$ or more can be bought at a unit price of $$6,65.$ Your ordering cost is $$29.$ Your inventory carrying cost is $15$ percent. You have established a service level policy of $95$ percent on this item. Use Table $7-2.$

a$.$ What is your optimal order quantity?

b$.$ What is your reorder point?

c$.$ How much safety stock do you carry?

d$.$ What is your average inventory?

Complete this question by entering your answers in the tabs below.

Requir$.$

What is your optimal order quantity?

Note: Round up your answer to the next whole number:

Optimal order quantity

units