Question: Will thumbs up if answer correct, thank you for help ! Problem 7-24 (Algo) You manage Inventory for your company and use a continuous review
Will thumbs up if answer correct, thank you for help !
Problem 7-24 (Algo) You manage Inventory for your company and use a continuous review Inventory system to control reordering items for stock. Your company is open for business 300 days per year. One of your most important items experiences demand of 27 units per day. normally distributed with a standard deviation of 3 units per day. You experience a lead time on orders from your supplier of six days with a standard deviation of two days. If you order 3,300 units or less, you pay the supplier $7.30 per unit. Orders of 3,300 or more can be bought at a unit price of $7.05. Your ordering cost is $33. Your inventory carrying cost is 15 percent. You have established a service level policy of 97.5 percent on this item. Use Table 7.2. a. What is your optimal order quantity? (Round up your answer to the next whole number.) Optimal order quantity units b. What is your reorder point? (Round up your answer to the next whole number.) Reorder point units c. How much safety stock do you carry? (Round up your answer to the next whole number.) Safely stock units d. What is your average inventory? (Round up your answer to the next whole number.) Average inventory units

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