Question: QUESTIONS: a. Calculate the items EOQ. What is the average time, in weeks, between orders? b. Find the safety stock and reorder point that provide

QUESTIONS:

a. Calculate the items EOQ. What is the average time, in weeks, between orders?

b. Find the safety stock and reorder point that provide a 98 percent cycle-service level.

c. For these policies, what are the annual costs of (i) holding the cycle inventory and (ii) placing orders?

Please clearly state the answer to each question. QUESTIONS: a. Calculate the items EOQ. What is

Problem 20 E Question Help Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table for Z-values > Demand (D) = 18,000 units/year > Ordering cost (S) - $50.00/order > Holding cost (H) - $3.00/unit/year > Lead time (L) = 4 week(s) > Cycle-service level 98% > Demand is normally distributed, with a standard deviation of weekly demand of 90 units > Current on hand Inventory is 1,040 units, with no scheduled receipts and no backorders. The item's economic order quantity is units. (Enter your response rounded to the nearest whole number)

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