Question: Weekly demand for a certain product is normally distributed with a mean of 4 2 0 and standard deviation of 9 . The source of

Weekly demand for a certain product is normally distributed with a mean of 420 and standard deviation of 9. The source of supply is reliable and maintains a constant lead time of 3 weeks. The cost of placing the order is $20 and annual holding costs are $2.50 per unit. There are no stockout costs and unfulfilled orders are filled as soon as the order arrives. Assume that sales occur over entire 52 weeks over a year. Find:
Part 1: (1 mark) Calculate Economic Order Quantity (EOQ)
Part 2: (1 mark) Calculate Reorder Point (use z=1.65)
Part 3: (0.5 mark) What is average on hand inventory
Part 4: (0.5 mark) How many orders will be placed per year if we order the BOQ quantity every time?
Part 5 : (0.5 mark) If the cost per unit is equal to S30? unit, calculate the total annual purchasing cost
Part 6: (1 mark) Calculate the total annual cost
Part 7: (0.5 mark) State the inventory policy
 Weekly demand for a certain product is normally distributed with a

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