Question: You may need to use the appropriate technology to answer this question. A cell phone manufacturer is preparing its inventory and production schedule. A key
You may need to use the appropriate technology to answer this question.
A cell phone manufacturer is preparing its inventory and production schedule. A key element is installing a SIM card into each phone. Demand has been averaging cards per week. Holding costs are $ per card per week, and reorder costs are estimated at $ per order.
The manufacturer does not want to be out of stock on more than of their orders. There is a oneday delivery time. The standard deviation of demand is five cards per day. Assume a normal distribution of demand during lead time and a sevenday work week. What is the total variable weekly cost including safety stock cost?
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