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Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review fixedorder quantity andor periodic review fixedorder period system. The ounce bottle of Super Algaecide SA is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data:
Demand boxes per week
Order cost $ order
Item cost $ box
Inventoryholding cost percent year
Store open weeksyear
Leadtime weeks
Std deviation in weekly demand
Service level percent
a What is the economic order quantity EOQ rounded to the next highest number? Round to the nearest whole number. boxes
b What is the reorder point for SA with safety stock? Use Appendix A to determine value. Round value to two decimal places. Do not round intermediate calculations. Round your answer to one decimal place.
boxes
c What is the average number of orders per year using the EOQ? Do not round intermediate calculations. Round your answer to two decimal places.
ordersyear
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