Calculate a fixed quantity reorder point system

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Reference no: EM13841155

A) Demand for widgets is 52K widgets per year, ordering cost is 40 per order. Unit cost is 5, carrying charge 20% per year, Demand is 1000 per week, LT 2 weeks, Standard deviation of demand 200/week, Calculate a fixed quantity reorder point system with a 95% service cycle level and explain how it works.

B) Current order quantity is 3000 units. How much savings versus the old way?

C) Using the same data, calculate a fixed period system with a 90% service cycle level and how it works.

Reference no: EM13841155

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