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HomeCraft is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Lead time for KraftyCity
HomeCraft is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Lead time for KraftyCity workbenches is 3 weeks, with a standard deviation of 1.2 weeks, and the average weekly demand is 24, with a standard deviation of 8 workbenches. Assume 50 weeks per year. Holding cost = $15 per workbench per year Ordering cost = $200 per order a) What is the EOQ? Round to nearest whole number. 179 b) What should the reorder point be if KraftyCity wants to provide a 95% service level? Round to nearest whole number
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