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A store stocks and sales model airplanes that have an average demand of 50 airplanes per week. The cost of each airplane is $50. The
A store stocks and sales model airplanes that have an average demand of 50 airplanes per week. The cost of each airplane is $50. The standard deviation and weekly demand is two airplanes. The lead time for receiving the airplane from the manufacturers is 4 weeks. the cost associated with placing an order is $30 and the annual holding cost for each airplane is 20% of $30. The company operates 52 weeks a year. What is the EOQ? And what is the ROP at a 95% service level (z=1.64)
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