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A retailer sells dog houses. The company is currently ordering 100 pieces of the product at a time. The average demand is 25 pieces per
A retailer sells dog houses. The company is currently ordering 100 pieces of the product at a time. The average demand is 25 pieces per week with a 15% standard deviation. Delivery time is fixed at 4 weeks. Management set to 90% customer service level (z = 1.28). It costs $ 250 to place an order, regardless of quantity, and $ 10 to keep a product in stock for one year. Answer the following questions! (Where the solution is not an integer, please round up the partial and final results to a maximum of two decimal places.) 1.How much should the safety stock (no of stock) for the company in order to keep the required customer service level? 2.At what level should be the reorder point? 3.How much is the current ordering policy's total cost? 4. Determine if the company is ordering the economic order quantity or not! If not, how much is the EOQ? 5.How much is the total cost of if the company is ordering the economic order quantity
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