Tune Football Helmets Company is considering changing its current inventory control system for football helmets. The information
Question:
Demand = 200 units/week
Lead time = 3 weeks
Order cost = $60/order
Unit cost = $80
Carrying charge rate = 0.075
Desired service level = 90%
Inventory position (IP) = 450
Standard deviation of weekly demand = 40
Number of weeks per year = 52
Compute T and M for a fixed period inventory system model with and without safety stock. Explain how this system would operate?
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IC 0758000 6year 4561 helmets T EOQ D 456 200 52 0043846 years or 00877 52 228 weeks 3 weeks M dT L ...View the full answer
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