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Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to
Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. To determine the optimal target stock level, the shop manager first determines the optimal service level of the muffler product. Item Cost per Annual Holding Cost Unit ($) Review Period Lead Time Annual Demand Annual Working Days Backlog Cost ($) Percentage (in working days) (in working days) 3000 30 0.30 15 300 Please fill in the below table, which walks you through the calculation steps. For non-integer answers, please round the numbers to 2 decimal places (i.e., round 0.256 to 0.26). Cu ($) Underage Cost Co ($) Overage Cost Critical Ratio
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