Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory control policy for its 1-irons, which have the following

image text in transcribed

A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory control policy for its 1-irons, which have the following characteristics: Mean demand =2000 units/year Demand is normally distributed Standard deviation of weekly demand =3 units Order cost =$40/ order Annual holding cost =$5/ unit Desired cycle-service level =90% Lead time =4 weeks Current on-hand inventory is 240 units, with no open orders and a backorder of 20 units. Currently, the company uses a continuous review policy. a. What is the EOQ? b. What should be the safety stock? What should the reorder point be? c. Please describe how you would control the inventory of 1-irons to those who do not know inventory management

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Blockchain And The Supply Chain Concepts

Authors: Nick Vyas, Aljosja Beije, Bhaskar Krishnamachari

2nd Edition

1398605239, 978-1398605237

More Books

Students also viewed these General Management questions

Question

Describe ADA requirements for public accommodations.

Answered: 1 week ago