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... for z-values. Demand (D) = 18,000 units/year Ordering cost (S) = $50.00/order Holding cost (H) = $3.00/unit/year Lead time (L) = 1 week(s) Cycle-service level = 98% Demand is normally distributed, with a standard deviation of weekly demand of 90 units. Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. Part 2 The item's economic order quantity is enter your response here units. (Enter your response rounded to the nearest whole number.)
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