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B21 X V fx A B C D E F G H L N Publix sells bottled water at its stores in Lawrenceville Ga. Demand

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B21 X V fx A B C D E F G H L N Publix sells bottled water at its stores in Lawrenceville Ga. Demand is expected to be 29,400 units anually. W Assume that the ordering costs are $180 per order, and annual holding costs are 30% of the value of the inventory. 4 Publix has 350 working days per year and a lead time of 5 days. The standard deviation for daily demand is 8. 5 What is the reorder point if publix wants a 98.5% service level? (z score for 0.985 = 2.17) 6 7 (3.2) The supplier has informed publix that it can offer the following quanity discounts 8 9 Quanity Price 10 1-1500 $1.50 11 1500-3999 $1.45 12 4000-99999 $1.42 13 14 15 Based on this information in what quanity should Publix choose when making orders? 16 Show all calculations for credit 17 18 19 20 21 22 23

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