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A compary begins a reviow of ordecing policies for its contruous review system by checking the current policies for a sample of skUs. Following are

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A compary begins a reviow of ordecing policies for its contruous review system by checking the current policies for a sample of skUs. Following are the characteristics of one tem. Refer to the standard normal table for z-values. > Demand (D)=120 unitsiweek (Assume 48 weeks per year) > Ordening and setup cost (S)=365cocder - Holding cost (H)=$1250 linilyear - Lead time (L)=1 weeks > Standard deviation of weeky demand =23 units > Cycle-service level a 90 percent a. What is the EOQ for this lem? 245 units. (Enter your msponse rounded to the neavest wholo number) b. What is the desired salety stock? 29 ) unts. (Enter your response rounded to the nearest whole number) c. What is the reorder point? unts. (Enter your reaponse rounded to the neavest whole number) d. What are the coet implications if the curtent polcy for this tem is Q=175 and R=1507 The arnual orbering cost is 1 (enter your mesponse rounded to two decmel places)

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