After a recent earthquake, classified as “small” by CARE International, the number of medical kits per week used in the first twenty weeks of the disaster is shown in in the following table (Excel data file C20P42.xlsx)

a. What information can you provide CARE managers for their inventory models using the Statistical Analysis Excel template?

b. What is an estimate of annual demand assuming 52 weeks a year?

c. If the medical kit holding cost is \($2.89\) per year, the order cost is \($160\) per order, the lead time is 4 weeks, and using a 98 percent service level for safety stock, what is the Economic Order Quantity and reorder point with safety stock for this stock keeping unit?

d. What are the total order and inventory carrying costs?

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Data for Problem 42: Medical Kits Used Number of Week Medical Kits 1 404 2 388 3 248 4 211 in 5 198 6 175 7 162 8 9 132 131 19 022222222 % 20 10 11 12 133 96 90 13 94 14 82 15 77 16 96 17 18 64 51 58 79