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TStar buys chemical solvent (Acetone) from a supplier. Acetone costs $50 per liter, the ordering cost is $90, and inventory holding cost is based on
TStar buys chemical solvent (Acetone) from a supplier. Acetone costs $50 per liter, the ordering cost is $90, and inventory holding cost is based on a 24% annual interest rate. The company uses an average of 30,000 liters of Acetone per year. The standard deviation of demand per week is 0.5% of the annual demand. Lead time for order arrival is 4 weeks, and the company would like to achieve 95% customer service level. ii. b. (17) Assuming that continuous review policy is used, find i. (3) Q*, (4) ROP 111. (3) Average inventory level iv. (3) Average number of orders in a year (4) Total annual cost. V. TStar buys chemical solvent (Acetone) from a supplier. Acetone costs $50 per liter, the ordering cost is $90, and inventory holding cost is based on a 24% annual interest rate. The company uses an average of 30,000 liters of Acetone per year. The standard deviation of demand per week is 0.5% of the annual demand. Lead time for order arrival is 4 weeks, and the company would like to achieve 95% customer service level. ii. b. (17) Assuming that continuous review policy is used, find i. (3) Q*, (4) ROP 111. (3) Average inventory level iv. (3) Average number of orders in a year (4) Total annual cost. V
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