Question
What is the average inventory level of calculated Q? What is the average inventory level of recommended Q? Average monthly demand = 425 units
What is the average inventory level of calculated Q?
What is the average inventory level of recommended Q?
Average monthly demand =
425 units
Holding rate =25%
Item cost per unit =
$130
Unfilled customer orders =
125 units
Ordering cost per order =
$1,250
Current open purchase order = 100 units
Lead time = 8 days
Current inventory level =
400 units
Items per box =
60 units
Safety Stock to cover =
12 days of demand
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Operations Management
Authors: William J Stevenson, Mehran Hojati, James Cao
6th Canadian Edition
1259270157, 978-1259270154
