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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 $ each. Customers want to buy the tablecloths at a rate of per week. The company operates weeks per year. Tacky, the owner, estimates his ordering cost at $ Annual holding costs are percent of the unit cost. Lead time is 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.
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 metformin tablets, a drug for diabetics, is normally distributed with a mean of tablets each week with a standard deviation of tablets per week. Lead time is three weeks. The desired cycleservice level is percent 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 tablets, calculate the appropriate replenishment order quantity.
a
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