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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

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.Demand (D)=64 units/week (Assume 52 weeks per year )Ordering or setup cost (S)= $50/orderHolding cost (H)= $13/unit/yearLead time (L)=2 weeksStandard deviation of weekly demand =12 unitsCycle-service level =88 percenta. What is the EOO for this item?b. What is the desired safety stock?c. What is the reorder point?What are the cost implications if the current policy for thisitem is Q =200 and R =180?

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