Base-stock periodic review inventory management system

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Reference no: EM132240104

IDIS Climate Control Systems Inc. uses a base-stock periodic review inventory management system to order a custom-made quick connector adapter. The demand for the adapter is 8000 units a year with a standard deviation of 20 units per week. The fixed trucking cost is $150 per order pick up from the supplier. The inventory holding cost per adapter per year is $12. The lead time is 1.5 months. The company is considering ordering a 1.5-ton condenser jointly. The trucking company quoted an additional $200 per pickup to pick both products on a single run. The demand for the condenser is 1500 units per year, inventory cost per condenser per year is $250, the lead time for the condenser is 1.5 month. CSL for both is 97.5%. Given this information calculate (assume one year is 52 weeks, and one month is four weeks, round the results to the nearest integer for Part b and c)

Common review interval (use three decimal place accuracy)

Order-up-to and average inventory levels for the quick release adapter

Order-up-to and average inventory levels for the condenser

Total cost per year for jointly ordering these two products together

Reference no: EM132240104

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