Question: Your firm uses a continuous review system and operates 5 2 weeks per year. One of the SKUs has the following characteristics. Refer to the
Your firm uses a continuous review system and operates weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table
for zvalues.
Demand unitsyear
Ordering cost $ order
Holding cost $unityear
Lead time weeks
Cycleservice level
Demand is normally distributed, with a standard deviation of weekly demand of units.
Current onhand inventory is units, with no scheduled receipts and no backorders.
The item's economic order quantity is units. Enter your response rounded to the nearest whole number.
The average time between orders is weeks. Enter your response rounded to two decimal places.
To provide a percent cycleservice level, the safety stock for this item is units. Enter your response rounded to the nearest whole number.
To provide a percent cycleservice level, the reorder point for this item is units. Enter your response rounded to the nearest whole number.
For these policies, the annual cost of holding the cycle inventory is $ enter your response rounded to two decimal places and annual cost of placing orders is $
enter your response rounded to two decimal places
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