Same problem statement Your company imports decorative planters from Italy. Weekly demand is 1,500 units on average, with a standard deviation of 800. Each planter costs you $10, and the holding cost per year is 25%. You are using a distribution center in Arizona, and fixed transportation costs from Italy is $10,000 per order. Consider a 52-week/year operations. If the order lead time from Italy is 4 weeks, and you want to provide a 90% in-stock probability, how much safety stock should you carry? (Use Table 13.4)

Same problem statement

Your company imports decorative planters from Italy. Weekly demand is 1,500 units on average, with a standard deviation of 800. Each planter costs you $10, and the holding cost per year is 25%. You are using a distribution center in Arizona, and fixed transportation costs from Italy is $10,000 per order. Consider a 52-week/year operations.

If the order lead time from Italy is 4 weeks, and you want to provide a 90% in-stock probability, what should be your reorder point? (Use Table 13.4)