Question: Using the simplified (Q,r) approach presented in lecture (Topic 15, part 2), what should the order quantity, safety stock, and reorder point levels be for

  1. Using the simplified (Q,r) approach presented in lecture (Topic 15, part 2), what should the order quantity, safety stock, and reorder point levels be for the following scenario?

Average weekly demand 5,250 units per week

Lead time 3 weeks

Standard deviation of weekly demand 378.1

Price per unit $86

Cost of ordering $600

Holding cost 16% of item cost

Desired service level 95%

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