Question
Consider the inventory cycles for one specific year for an SKU in the following figure. inventory 120 60 20 5 7 9 11 12
Consider the inventory cycles for one specific year for an SKU in the following figure. inventory 120 60 20 5 7 9 11 12 -40 -60 A. Calculate the non-stock-out probability and the fill rate. time (month) B. The unit cost of the SKU is $100, and the annual inventory holding cost rate is 20%. In order to keep the customers happy, the sales manager o ers a $10 discount for each backorder. This can be considered as the backorder cost for each SKU demand that is backordered. Calculate the total average cost during this year for this SKU.
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