Question: Under a Q system to manage inventory, the EOQ is calculated to be 540 units the safety stock to accomplish the desired service level
Under a Q system to manage inventory, the EOQ is calculated to be 540 units the safety stock to accomplish the desired service level is 10 units the reorder point that already includes the above safety stock is 150 units and the average order cycle is 2 days. You should place an order of 540 units whenever the inventory position drops below units.
Step by Step Solution
There are 3 Steps involved in it
To determine when to place an order under a Q system also known as a continuous review or reorder po... View full answer
Get step-by-step solutions from verified subject matter experts
