Question: The MS Traders is dealing in poultry medicines, has started the business near a small town since 2017. Managing inventories has become a problem. Low
The MS Traders is dealing in poultry medicines, has started the business near a small town since 2017. Managing inventories has become a problem. Low inventory turnover is squeezing profit margins and causing cash-flow problems. One of the top-selling SKUs in the MS Traders is a Chlorine Dioxide Disinfectant. The demand for the Chlorine Dioxide Disinfectant is normally distributed with a mean of 18 units per week and a standard deviation in weekly demand of 5 units. The lead time is 2 weeks, and the business operates 52 weeks per year. The Q system called for an EOQ of 75 units and safety stock of 9 units for a cycle-service level of 90%. What is the equivalent P system? Answers are to be rounded to the nearest integer. If the cost is the only criterion, either P or Q system would be the choice for MS Traders?
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