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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. Use a standard normal table for z-values. > Demand (D)=100 units/week (Assume 52 weeks per year) > Ordering and setup cost (S)=$75 /order > Holding cost (H)=$13.25/ unit/year > Lead time (L)=4 weeks > Standard deviation of weekly demand =19 units > Cycle-service level =90 percent What is the annual holding cost? (Enter your response rounded to one decimal place.)
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