Question: Sales per week ( d ) = 3 . 4 Standard deviation of demand per week ( sigma d ) = 1 . 7
Sales per week d
Standard deviation of demand per week sigma d
Step : The company is using the Q system to manage inventory. The order cost is $ per order and the holding cost per unit per week is $ The company is targeting customer satisfaction measured by order fulfillment rate. The order lead time is weeks. There are weeks in a year. Answer the following questions
Economic Order Quantity
Safety Stock
Reorder Point
Average Inventory Level
Total Inventory Cost in a year
Step : Following the information above, the company uses the P system to manage inventory with a fourweek inventory review period. What is the target inventory level?
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