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Given the following information, formulate an inventory management system. The item is demanded 5 0 weeks a year. PARAMETER VALUE Item cost $ 7 .
Given the following information, formulate an inventory management system. The item is demanded weeks a year.
PARAMETER VALUE
Item cost $
Order cost $ per order
Annual holding cost of item cost
Annual demand units
Average weekly demand per week
Standard deviation of weekly demand units
Lead time week
Service probability
Determine the order quantity and reorder point.
Note: Use Excel's NORMSINV function to find the correct critical value for the given alpha level. Do not round intermediate calculations. Round z value to decimal places and final answer to the nearest whole number.
Determine the annual holding and order costs.
Note: Do not round any intermediate calculations. Round your final answers to decimal places.
Assume a price break of $ per order was offered for purchase quantities of or more units per order. If you took advantage of this price break, how much would you save annually?
Note: Do not round any intermediate calculations including number of setups per year Round your final answer to decimal places.
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