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ne of the SKUs kept at a hospital has the following characteristics. The hospital uses a continuous review system and operates 5 2 5 2

ne of the SKUs kept at a hospital has the following characteristics. The hospital uses a continuous review system and operates 5252 weeks per year.
followsDemand (D)=18 comma 60018,600units/year
followsOrdering cost(S)=$30.0030.00/order
followsHolding cost(H)=$4.254.25/unit/year
followsLead time(L)=11week(s)
followsCycle-service level=9696%
followsDemand is normally distributed, with a standard deviation of weekly demand of 9393 units.
The z-values for different service levels are given below:
Cycle-service level
z-value
88%
1.175
90%
1.28
92%
1.41
95%
1.65
96%
1.75
98%
2.05
99%
2.33
a. The item's economic order quantity is enter your response here units. (Enter your response rounded to the nearest whole number.)
b. The average time between orders is enter your response here weeks. (Enter your response rounded to two decimal places.)
c. To provide a 9696 percent cycle-service level, the reorder point for this item is enter your response here units. (Enter your response rounded to the nearest whole number.)
d. For these policies, the annual cost of placing orders(ordering costs) is $enter your response here (enter your response rounded to two decimal places).
e.Currently, the on-hand inventory is 471471units, with no scheduled receipts and no backorders. Should the hospital place another order now?
A.
No

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