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Problem 7-23 (Algo) You manage Inventory for your company and use a continuous review Inventory system to control reordering items for stock. Your company is

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Problem 7-23 (Algo) You manage Inventory for your company and use a continuous review Inventory system to control reordering items for stock. Your company is open for business 300 days per year. One of your most important items experiences demand of 23 units per day, normally distributed with a standard deviation of 4 units per day, You experience a lead time on orders from your supplier of seven days with o standard deviation of three days. If you order 1,300 units or less, you pay the supplier $5.30 per unit. Orders of 1,300 or more can be bought at a unit price of $5.05. Your ordering cost is $53. Your inventory carrying cost is 15 percent. You have established a service level policy of 90 percent on this item. Use Table 7.2. a. What is your optimal order quantity? (Round up your answer to the next whole number.) Optimal order quantity units b. What is your reorder point? (Round your answer up to the next whole number.) Reorder point units c. How much safety stock do you carry? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Safety stock unite d. What is your average Inventory? (Round your answer up to the next whole number)

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