Question
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal tableLOADING...
forz-values.
Demand (D) = 18,600 units/year
Ordering cost(S) = $35.00/order
Holding cost(H) = $2.50/unit/year
Lead time(L) = 4 week(s)
Cycle-service level= 90%
Demand is normallydistributed, with a standard deviation of weekly demand of 93 units.
Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.
Theitem's economic order quantity is
nothing
units. (Enter your response rounded to the nearest wholenumber.)
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