Calculate order quantity and cycle inventory

Reference no: EM13825425

Cost Accounting Question:

Consider the following data pertaining to a distribution center.

Parameter	Value
Mean Weekly Demand	100
Standard Deviation of weekly Demand	30
Lead Time	2 Weeks
# of weeks in year	50

Ordering cost $50/ order

Holding cost $4/unit/week

Cycle service level 97%

Calculate Order quantity, Cycle inventory, Safety Inventory, Reorder Level, Annual Inventory holding cost, Number of orders per year, Annual ordering cost,

Additional information-

This question is relates to cost accounting in finance. It deals with measures such as Order Quantity, Cycle Inventory, Reorder Level, Safety Inventory, Annual Ordering Cost, Annual Inventory Holding, etc. All these measures are calculated according to given cost and time.

Reference no: EM13825425

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