Question: Problem statement (Inventory Management) A retailer keeps an inventory for its bestselling SKU. The weekly rate of demand for the SKU is horizontal and random.

Problem statement (Inventory Management) A

Problem statement (Inventory Management) A retailer keeps an inventory for its bestselling SKU. The weekly rate of demand for the SKU is horizontal and random. The mean value of weekly demand is 200 units/week, and the standard deviation of the weekly demand is 25 units/week. The order's shipment lead-time is 2 weeks. We assume there are 50 weeks in a year. The ordering cost is $500/order. The inventory holding cost is $15 per unit per year. Use this information to answer the questions in Part I and Part II of this problem. The normal distribution table is in Appendix of the Textbook. Part II. Period Review System. Suppose that the manager of the retailer uses Periodic Review (P) system to manage the inventory. The manager reviews the inventory and orders for resupply every 3 weeks. (Recall that order shipment lead-time is 2 weeks.) The retailer aims at the cycle service level of 95%. At the beginning of the current review cycle, the manager finds that there are 150 units in backorder and 45 units in transit to the retailer. For this review cycle, the manager should order: (Please report your answer as the whole number.) To meet the cycle service level requirement, the manager must set the Target Inventory Position to be ____ or higher (Please report your answer as the whole number.)

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