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Please show how you got your answer. The information for the auto parts supplier from Problem 9 is provided again in the table below. Use
Please show how you got your answer.
The information for the auto parts supplier from Problem 9 is provided again in the table below. Use this information to answer the Reorder Point questions below. Assume the supplier is using the EOQ you calculated in Problem 9 for the order quantity. Remember the supplier is open 312 days per year. Inventory Information for Car Battery Battery Cost Annual Holding Cost (as a % of Cost) Cost to place an Order Estimated Daily Demand (Based on days store is open) Std Dev. Of daily demand Lead time in days $45 24.00% $5 55.00 12.60 10.00 If the company used a reorder point system with a 90% customer service level how much safety stock would it need? How much would the holding cost increase to carry that safety stock? How many stock outs would it incurr with a 90% customer service levelStep by Step Solution
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