Question: Question 3 LIMU is now considering changing its inventory control system to a Fixed-Time system. The company wishes to place orders for pumps monthly and

Question 3 LIMU is now considering changing its

Question 3 LIMU is now considering changing its inventory control system to a Fixed-Time system. The company wishes to place orders for pumps monthly and still satisfy the 5% stock out. Answer the following questions, assuming LIMU always has 30 units of inventory on hand and currently, the lead time is 2 weeks and review period is 5 week. (Show all calculations to verify your answer) a. b. What would be the impact on safety stock if the service probability alone were reduced? [3] What would be the impact on order quantity if Lead time is increased by 1 week? [3] What would be the impact on the order size if the time between orders is reduced? [3] C. Total 9 Marks

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