Question: The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below: Average demand =
The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below:
| Average demand = 210 units/week |
| Lead time = 3 weeks |
| Order cost = $60/order |
| Unit cost = $80 |
| Carrying charge rate = 0.045 |
| Desired service level = 85 percent |
| Standard deviation of weekly demand = 31 |
| Number of weeks per year = 52 |
Use the FPS Safety Stock Excel template in MindTap to compute T and M for a fixed-period inventory system model with and without safety stock. Use the rounded EOQ value in your calculations. Use Appendix A to determine z-value. Round z-value to two decimal places. Do not round intermediate calculations. Round your answer for T up to the nearest whole number and round your answer for M to the nearest whole number.
T: weeks
M:
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