Using the same information as in Problem 21, develop the best policies for a periodic review system.
Question:
Using the same information as in Problem 21, develop the best policies for a periodic review system.
a. What value of P gives the same approximate number of orders per year as the EOQ? Round to the nearest week.
b. What safety stock and target inventory level provide an 88 percent cycle-service level?
Data from problem 21
A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item.
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Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
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