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FairPrice Xtra in Jurong Point is using a fixed period inventory system to control its inventory of brown sugar ice cream from Taiwan. The average
FairPrice Xtra in Jurong Point is using a fixed period inventory system to control its inventory of brown sugar ice cream from Taiwan. The average monthly demand for brown sugar ice cream is tubes and the following information is available:
Lead time month
Ordering cost $ per order
Unit price $
Carryingholding rate
Standard deviation of monthly demand
Assume weeks
Analyse the review period and optimal replenishment level with safety stock. Comment on how the system should be managed.
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