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Crew Soccer Shoes Company is considering a change of their current inventory - control system for soccer shoes. The information regarding the shoes is given
Crew Soccer Shoes Company is considering a change of their current inventorycontrol system for soccer shoes. The information regarding the shoes is given below:
Demand pairsweek
Lead time three weeks
Order cost $order
Holding cost $pairyear
Cycle service level percent
Standard deviation of weekly demand
Number of weeks per year
A: The company decides to use a fixedorder quantity system. What would be the reorder point and the economic order quantity? Round your answers to the nearest whole number.
Economic order quantity:
units
Reorder point:
units
B: In this system, at the beginning of the current week, the materials manager, Luke Thomas, checked the inventory level of shoes and found pairs. There were no scheduled receipts and no back orders. Should he place an order? Explain your answer.
Since the inventory level of pairs is lowerhigher
than the reorder point, Emily shouldshould not place an order.
C: If the company changes to a fixedperiod system and reviews the inventory every two weeks T how much safety stock is required? Round your answer to the nearest whole number.
units
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