Question
The mean of demand is 1,000 units/week and the standard deviation of demand in each week is 200 units. Holding an item in inventory for
The mean of demand is 1,000 units/week and the standard deviation of demand in each week is 200 units. Holding an item in inventory for each week cost $1. Orders take 8 weeks to arrive. We want an in-stock probability of 0.99 (z = 2.33). What is the cost for holding inventory per unit?
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Step: 1
To calculate the cost for holding inventory per unit you can use the Economic Order Quantity EOQ mod...
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
