Question: The demand and order data for a product is given below: Average demand = 2 0 0 items / week . Normally distributed. Standard deviation
The demand and order data for a product is given below:
Average demand itemsweek Normally distributed.
Standard deviation of demand itemsweek
Order cost $ order
Holding cost rate
Unit cost $
Lead time week constant
Operating weeks weeks a year.
a Calculate the economic order quantity for the product.
b Calculate the safety stock for the product. Required Cycle Service Level CLS is
c What are the maximum and average space requirements? Show all calculations to earn full credit.
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