Question: Sales per week ( d ) = 3 . 4 Standard deviation of demand per week ( sigma d ) = 1 . 7

Sales per week (d)=3.4
Standard deviation of demand per week (\sigma d)=1.7
Step 3: The company is using the Q system to manage inventory. The order cost is $2 per order and the holding cost per unit per week is $0.2. The company is targeting 95% customer satisfaction measured by order fulfillment rate. The order lead time is 2 weeks. There are 52 weeks in a year. Answer the following questions
Economic Order Quantity =
Safety Stock =
Re-order Point =
Average Inventory Level =
Total Inventory Cost in a year =
Step 4: Following the information above, the company uses the P system to manage inventory with a four-week inventory review period. What is the target inventory level?

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