Crew Soccer Shoes Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below:

a. The company decides to use a fixed-order quantity system. What would be the reorder point and the economic order quantity?

b. In this system, at the beginning of the current week, the materials manager, Luke Thomas, checked the inventory level of shoes and found 300 pairs. There were no scheduled receipts and no back orders. Should he place an order?
Explain your answer.

c. If the company changes to a fixed-period system and reviews the inventory every two weeks (T = 2), how much safety stock is required?

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Demand 100 pairs/week Lead time = three weeks Order cost = $35/order Holding cost = $2.00/pair/year Cycle service level = 95 percent Standard deviation of weekly demand = 50 Number of weeks per year = 52