When the inventory position reaches what amount

Assignment Help Operation Management

Reference no: EM132219334

You must do the necessary calculations in the answer cells. Simply providing a number in the answer cell will not receive any credit.

Part 1: Enter the requested information into the green cells. Round off to 1 decimal point.

The online Collegiate Products Store gathered the following information regarding UND sweatshirts:

2017

Annual Demand 1200

Cost per hoodie 14.5

Carrying Cost per sweatshirt per year as a percentage of the cost of a sweatshirt 30%

Cost per order placed $25

Lead time in months 1

Standard Deviation of Demand during lead time 23

Desired Service Level should be at least 90.30%

Question 1: If you don't use safety stock, you should place an order when the inventory position reaches what amount?

Question 2: If you do use safety stock, how many sweatshirts should be added to Re-order Point (Give amount of safety stock only)?

Question 3: When the reorder point is reached, how much sweatshirts should be ordered?

Reference no: EM132219334

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