Troy Enterprises Uses a Continuous Review Inventory Control System

question 114

Short Answer

Troy Enterprises uses a continuous review inventory control system. The firm operates 50 weeks per year, with an annual demand of 50,000 units, an ordering cost of $35 per order, a holding cost of $1 per unit per year, a lead time of 3 weeks, and a standard deviation of demand during lead time equal to 216.51 units.
(a) How many units should be ordered at a time (rounded to the nearest unit)?
(b) What is the reorder point if a 94% order-cycle service level is desired?

---

Definitions:

In-house Survey

A survey conducted internally within an organization to gather feedback or information from employees or departments.

Compa-ratio

A metric comparing an individual's salary to the midpoint of the market rate for similar positions.

Pay Dispersion

The extent to which salaries vary within a company or organization, often measured by the difference between the highest and lowest paid positions.

Pay Range

The scale of minimum to maximum amounts of compensation that an organization is willing to pay for a specific job or level of responsibility.