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Demand (D)=88 units/week (Assume 52 weeks per year) Ordering and setup cost (S)=$90 /order > Holding cost (H)=$18/ unit/year Data Table > Lead time (L)=1
Demand (D)=88 units/week (Assume 52 weeks per year) Ordering and setup cost (S)=$90 /order > Holding cost (H)=$18/ unit/year Data Table > Lead time (L)=1 week (s) Standard deviation of weekly demand =22 units Cycle-service level =96 percent The table below shows the total area under the normal curve for a point that is Z standard deviations to EOQ=214 units the right of the mean. Using the above information, develop the best policies for a periodic review system. Refer to the standard normal table for z-values. a. What value of P gives the same approximate number of orders per year as the EOQ ? weeks. (Enter your response rounded to the nearest whole b. To provide a 96 percent cycle-service level, the average safety stock is units. (Enter your response rounded to the nearest whole number.) To provide a 96 percent cycle-service level, the target inventory level is units. (Enter your response rounded to the nearest whole number.)
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