Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Demand for self-cleaning bottles has shown a monthly trend of higher sales recently. The demand for the month of February 2020 is 18224. January 2020

Demand for self-cleaning bottles has shown a monthly trend of higher sales recently. The demand for the month of February 2020 is 18224. January 2020 level was 17896 and Trend 274. The forecast uses an = 0.2 and =0.25. Develop a forecast for the next 12 months using Holt's model. The company orders the bottles from a supplier in Bangladesh. It is ready to place an order now based on the next 12 months forecast as annual demand. The ordering cost is $2500 and the inventory annual holding cost is $3.00. What is the optimal ordering quantity? The lead time for delivery is a month and the monthly standard deviation for demand is 2000. Please show a calculation on the reorder point and safety stock for a service level of 0.9. You can show this on an excel sheet if that is easier.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management in the Supply Chain Decisions and Cases

Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein

6th edition

73525243, 978-0073525242

More Books

Students also viewed these General Management questions

Question

7.9 What is industry analysis, and why is it important?

Answered: 1 week ago