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Tacky Souvenirs sells lovely handmade tablecloths at its island store. These tablecloths cost Tacky $ 1 5 each. Customers want to buy the tablecloths at

Tacky Souvenirs sells lovely handmade tablecloths at its island store. These tablecloths cost Tacky $15 each. Customers want to buy the tablecloths at a rate of 240 per week. The company operates 52 weeks per year. Tacky, the owner, estimates his ordering cost at $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Using the information given,
a. Calculate the economic order quantity.
b. Calculate the total annual costs using the EOQ.
c. Determine the reorder point.
d=6004,5*d=500,LT=3,z=1.64
ow your work below:
Gray's Pharmacy uses a periodic review inventory system. Every Friday, the pharmacist reviews her inventory and determines the size of the replenishment order. For example, she knows that demand for 500mg metformin tablets, a drug for diabetics, is normally distributed with a mean of 6000 tablets each week with a standard deviation of 500 tablets per week. Lead time is three weeks. The desired cycle-service level is 95 percent )=(1.645. There are currently no outstanding orders.
a. Calculate the required safety stock.
b. Calculate the target inventory level.
c. If, when she reviews her inventory of metformin, the pharmacist finds that she currently has 19,000 tablets, calculate the appropriate replenishment order quantity.
a-
3
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