Two managers work at Wagu, a company that supplies household items to department stores. Wagu executives would like to make changes to their inventory system specifically for the dinnerware set. Manager A proposes using a model that is time-triggered to manage inventory while Manager B proposes using a model that is event-triggered to manage inventory. 

Using the information below, calculate the order quantity both managers will obtain.

For the event-triggered model, determine the reorder point accounting for safety stock. Annual Demand 2,400 units Standard Deviation of demand 4 units per day Working days 365 days Service level 98.214% Order cost per year $5 Holding cost per unit per year $4 Lead time 1 week (7 days) Review period 15 days Inventory on hand 50 units Manager A:Fixed-time period models Manager B: Fixed-order quantity models

Answer rating: 100% (QA)

Calculating Order Quantities for Wagus Dinnerware Set For Manager A FixedTime Period Model Determine ... View the full answer