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20 fl. oz. Bottles of water Ordering cost S = $4 Inventory carrying cost rate i = 0.1 = 10% Unit cost c = $1.00
20 fl. oz. Bottles of water Ordering cost S = $4 Inventory carrying cost rate i = 0.1 = 10% Unit cost c = $1.00 Desired service level = 98% Lead time LT = 3 weeks
Make a forecast using 10 week average Determine the EOQ, check annual costs Determine standard deviation Determine safety stock SS Determine inventory investment ($)
sales history | |
week 1 | 6000 |
week 2 | 5000 |
week 3 | 6400 |
week 4 | 3500 |
week 5 | 8500 |
week 6 | 7000 |
week 7 | 8500 |
week 8 | 7600 |
week 9 | 5000 |
week 10 | 9000 |
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