Using the above data, answer the following questions (show your work):
Calculate Q* (economic order quantity).
Calculate ROP (reorder point) with and without safety stock for Reorder Point Model.
Model.
Calculate T (target order-up-to level) for a Fixed Period Model.
Calculate P (time between orders) for a Fixed Period BUS 364 Supply Chain Management
Chapter 4: Inventory Planning Homework
Directions: Using the provided data, answer all the questions. SHOW ALL YOUR WORK. Upload a copy (Word, PDF, or Excel) or a photo (GIF or JPG) to the drop box in Brightspace by the due date.
d
Weekly Demand
2000 units
# weeks per year
52 weeks
S
Setup or Order Cost
$100
H
Holding or Carrying Cost
10% per unit per year
C
Cost of the Item
$10 per unit
L
Lead Time
2 weeks
Z (.90)
Desired Service Level of 90%
1.3
Standard Deviation of Demand During Lead Time 200 units
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