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High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed, the order is picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system helps monitor and control these SKUs. The following information is for one of the calculators that they stock, sell, and ship.Average demand 12.5 calculators per weekLead time 3 weeksOrder cost $20/orderUnit Cost $8.00Carrying Change rate .15Number of weeks 52 weeks per yearStandard Deviation of weekly demand 3.75 calculatorsSKU service level 90 percentSchedule receipts 20 calculatorsBackorders 2 calculatorsCurrent on-hand inventory 35 calcutors
What is the EOQ.What is the total annual order and inventory holding costs for the EOQ.What is the reorder point without safety stock. What is the reorder with safety stock.
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what would be the quantities that would need amendment as far as Distribution Manager is concerned to service for week two and onwards?
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