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3) Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year with the following characteristics: Demand (d) = 5,007 units/week

3) Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year with the following characteristics:

  • Demand (d) = 5,007 units/week
  • Ordering cost (S) = $55.00/order
  • Holding cost (H) = $2.50/unit/year
  • Lead time (L) = 3 week(s)
  • Cycle-service level = 90%, z = 1.28
  • Demand is normally distributed, with a standard deviation of weekly demand of 103 units.
  • Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.

The TBO is _________ weeks (enter your response rounded to 1 decimal places).

4) Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics.

  • Demand (D) = 20,600 units/year
  • Ordering cost (S) = $55.00/order
  • Holding cost (H) = $ 3.1/unit/year
  • Lead time (L) = 3 week(s)
  • Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.

What is the annual cost of holding the cycle inventory? (Please wait and round at the end of the calculations, enter your response rounded to 2 decimal places.)

5) Wear A Mask (WAM) 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.

  • Demand (d) = 200 units/week (Assume 52 weeks per year)
  • Ordering and setup cost (S) = $75/order
  • Holding cost (H) = $13.25/unit/year
  • Lead time (L) = 7 weeks
  • Standard deviation of weekly demand = 19 units
  • Cycle-service level = 90 percent, z = 1.28

What is the reorder point? (Enter your response rounded to the nearest whole number.)

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