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Tune Football Helmets Company is considering changing its current inventory control system for football helmets. The information regarding the helmets is given below.
Demand = 200 units/week
Lead time = 2 weeks
Order cost = $60/order
Unit cost = $20
Carrying charge rate = 0.075
Desired service level = 90%
Inventory Position (IP) = 450
Standard deviation of weekly demand = 40
Number of weeks per year = 52
Compute T and M for a fixed period inventory system model with and without safety stock. Explain how this system would operate.
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