Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answerer only no explain d= Average Demand Rate per Time Period D= Demand Rate per Year L= Average Lead time (time periods) SS = Safety
answerer only no explain
d= Average Demand Rate per Time Period D= Demand Rate per Year L= Average Lead time (time periods) SS = Safety Stock =zdL dL=Ld2 (Assuming Lead Time is constant as in Periodic review) d= Standard Deviation of the demand z= Number of Standard deviations corresponding to a service level Q = Order Quantity Average Inventory Level =Q/2+ SS H= Holding Cost Per Year Per Unit S= Ordering/Setup Cost Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ =H2DS Time Between Orders =TBO=DEOQ 3276 gallons of paint 21 gallons of paint 52 gallons of paint 63 gallons of paint 1638 gallons of paint d= Average Demand Rate per Time Period D= Demand Rate per Year L= Average Lead time (time periods) SS = Safety Stock =zdL dL=Ld2 (Assuming Lead Time is constant as in Periodic review) d= Standard Deviation of the demand z= Number of Standard deviations corresponding to a service level Q = Order Quantity Average Inventory Level =Q/2+ SS H= Holding Cost Per Year Per Unit S= Ordering/Setup Cost Per Order Total Annual Inventory Cost =(2Q)H+(QD)S+H(SS) Economic Order Quantity, EOQ =H2DS Time Between Orders =TBO=DEOQ 3276 gallons of paint 21 gallons of paint 52 gallons of paint 63 gallons of paint 1638 gallons of paint Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started