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A sporting goods company has a distribution center that maintains inventory of fishing rods. The flshing rods have the followinc demand, lead time, and cost
A sporting goods company has a distribution center that maintains inventory of fishing rods. The flshing rods have the followinc demand, lead time, and cost characteristics:
Average demand units per day, with a standard deviation of units
Average lead time days with a standard deviation of days
days per year in the business year
Unit cost $
Desired service level
Ordering cost $
Inventory carrying cost
a What is the standard deviation of demand during lead time?
b How many fishing rods should the distribution center carry to provide the desired service level?
c What is the EOQ?
d What is the average cycle stock?
Complete this question by entering your answers in the tabs below.
How many flshing rods should the distribution center carry to provide the desired service level?
Note: Round up your answer to the next whole number.
Number of fishing tods
Sinits
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