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: The Greyhound Company

The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below:

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 = 180 units/week
Lead time = 4 weeks
Order cost = $70/order
Unit cost = $75
Carrying charge rate = 0.050
Desired service level = 85 percent
Standard deviation of weekly demand = 49
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:

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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