Suppose that your firm uses a periodic-review system, but otherwise the data are the same as in
Question:
a. Calculate the P that gives approximately the same number of orders per year as the EOQ. Round your answer to the nearest week.
b. Find the safety stock and the target inventory level that provides a 95 percent cycle-service level.
c. How much larger is the safety stock than with a Q system?
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Related Book For
Supply Chain Focused Manufacturing Planning and Control
ISBN: 978-1133586715
1st edition
Authors: W. C. Benton
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