Question: Trenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key
Trenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review fixedorder quantity andor periodic review fixedorder period system. The ounce bottle of Super Algaecide SA is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data:
tableDemand boxes per week,Store open weeks yearOrder cost $ order,Leadtime weeksItem cost $ box,Std deviation in weekly demand
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