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The IDIS Climate Control Systems Inc. uses a base-stock periodic review inventory management system to order a custom-made quick connector adapter and a 2-ton condenser

  1. The IDIS Climate Control Systems Inc. uses a base-stock periodic review inventory management system to order a custom-made quick connector adapter and a 2-ton condenser from the same supplier.

The demand for the quick connector adapter is 5200 units a year with a standard deviation of 20 units per week. The inventory holding cost per adapter per year is $12 and CSL target is 95%.

The demand for the condenser is 50 units per week with a standard deviation of 5 units per week, inventory cost per condenser per year is $250, and CSL target is 95%.

The lead time for the adapter and condenser is 1.5 months.

The trucking company charges $150 per stop plus $100 for each item to be picked up from a location. The IDIS Climate Control Systems Inc. is considering ordering these two products jointly. Given this information calculate (assume one year is 52 weeks, and one month is four weeks, round the results to the nearest integer for Part b, c, d and e)

  1. Common review interval in weeks (use three decimal place accuracy) (5 Points)
  2. Order-up-to and average inventory levels for the quick release adapter (5 Points)
  3. Order-up-to and average inventory levels for the condenser (5 Points)
  4. Total Cost per year (5 Points)

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