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You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand =25,000 units / year Ordering cost =$31/ order Holding cost =$1/ unit / year Lead time =4 days Standard deviation in daily demand =5 units Service level =95%(z=1.65) What is the reorder point? (Please round your calculations to the nearest whole number.) You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand =25,000 units / year Ordering cost =$37/ order Holding cost =$4/ unit / year Lead time =4 days Standard deviation in daily demand =8 units What is the optimal (expected) number of orders ( N ) per year (to the nearest whole number)
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