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If you are using the EOQ you calculated, the time between reviews/orders (order interval) is equal to ________ (rounded to the nearest integer). Calculate the
If you are using the EOQ you calculated, the time between reviews/orders (order interval) is equal to ________ (rounded to the nearest integer). Calculate the maximum inventory of the periodic review system model and the order quantity of the periodic review system model (round to the nearest integer).
A store has collected the following information on one of its products: Demand =20,000 units/year Standard deviation of weekly demand =49 units Ordering costs =$45/ order Holding costs =$5/ unit/year Cycle-service level =97% Lead time =3 weeks Number of weeks per year =50 weeks The store decided to change to the periodic review system to control the item's inventory. For the most recent review, an inventory clerk checked the inventory of the item of interest and found 300 units. There were no scheduled receipts at the time. The question is: how many units of this item should be ordered? (HINT: Use the EOQ model to derive OI (order interval), the time between reviews/orders.)Step by Step Solution
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