Reference no: EM132253636
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table for? z-values.
?Demand ?(D) =19,600 ?units/year
?Ordering cost? (S) = $50.00?/order
?Holding cost? (H) = 2.50?/unit/year
?Leadtime? (L) =3 ?week(s)
??Cycle-service level? = 99?%
?Demand is normally? distributed, with a standard deviation of weekly demand of 98 units.
?Current on-hand inventory is 1,040 ?units, with no scheduled receipts and no backorders.
The? item's economic order quantity is 885 units. ?(Enter your response rounded to the nearest whole? number.)
The average time between orders is __ weeks. ?(Enter your response rounded to two decimal? places.)
To provide a 92 percent? cycle-service level, the safety stock for this item is __units. ?(Enter your response rounded to the nearest whole? number.)
To provide a 92 percent? cycle-service level, the reorder point for this item is __units. ?(Enter your response rounded to the nearest whole? number.)
For these? policies, the annual cost of holding the cycle inventory is $ __ ?(enter your response rounded to two decimal? places)