Question: Wallace and Son uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. Order cost

Wallace and Son uses a continuous review inventory control system for one of its SKUs. The following information is available on the item.

Order cost = $35/order Unit cost = $10 Carrying charge rate = 0.20 Number of working weeks per year = 50 Demand = 50,000 units/week Standard deviation of weekly demand = 15,000 units Average lead time = 8 weeks Standard deviation of lead time= 3 weeks Cycle-service level= 90% A continuous review system is used to control inventory.

a. What is the economic order quantity?

b. What should be the safety stock be to have a 90% service level?

c. What should be the reorder point be to have a 90% service level?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

[ 2 0 points ] An office suppliers distributor uses a continuous review inventory control system for one of its SKUSThe following information is available on the item. Order cost = \ $ 1 0 0 / order...

Question 10 3 pts Fullerton Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 50 weeks a year....

[20 points] An office suppliers distributor uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. Order cost = $75/order Unit cost...

dont answer this i want a refund [20 points] An office suppliers distributor uses a continuous review inventory control system for one of its SKUs. The following information is available on the item....

[20 points] Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. Order cost = $35/order Unit cost = $10...

1) please help me with this work? Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 52...

Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 52 weeks in a year. Refer to the...

Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firPetromax Enterprises uses a continuous review...

Petromax Enterprises uses a continuous review inventory control system for one of its SKUS. The following information is available on the item. The firm operates 4 8 weeks in a year. Refer to the...

Springer Inc. carries the following marketable equity securities on its books at December 31, 2013, and 2014. All securities were purchased during 2013 and there were no beginning balances in any...

Two identical uniform cylinders of mass m and radius r are at rest at time t = 0 when a couple M of constant magnitude M M

5. If a completed diagram contains two Xs, the argument cannot be valid. True or False.

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...