A Store Has Collected the Following Information on One of Its

question 107

Essay

A store has collected the following information on one of its products:
Demand = 10,000 units/year
Standard deviation of weekly demand = 25 units
Ordering costs = $30/order
Holding costs = $4/unit/year
Cycle-service level = 95% (z for 95% = 1.65)
Lead-time = 2 weeks
Number of weeks per year = 50 weeks
a.If a firm uses the continuous review system to control the inventory,what would be the order quantity and reorder point?
b.The firm decided to change to the periodic review system to control the item's inventory.For the most recent review,an inventory clerk checked the inventory of this item and found 200 units.There were no scheduled receipts or backorders at the time.How many units should be ordered? (HINT: Use the EOQ model to derive P,the time between reviews. )

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Definitions:

Suspended

Temporarily halted or stopped from a specific action, status, or privilege, often as a disciplinary measure.

Violence Continuum

The violence continuum describes the range or spectrum of behaviors that constitute violence, from verbal abuse to physical assault, indicating the progression of aggressive actions.

Rage

Intense, uncontrolled anger that can manifest in violent behavior or emotional outbursts.

Lack of Sensitivity

The inability or unwillingness to perceive and respond to the needs or feelings of others.