Business, 05.05.2020 17:36 kamiyaharris1

A Discount Appliance Store uses a continuous review system (Q system). One of the company's items has the following characteristics: Demand 10 units/week (assume 52 weeks per year) Ordering and setup cost (S) $45/order Holding cost (H) $12/unit/year Lead time ()3 weeks (constant) Standard deviation of weekly demand = 8 units Cycle-service level = 70% (a) What is the EOo for this item? Note: Show all steps and calculations. (b) what is the desired safety stock? Note: Show all steps and calculations. (c) what is the desired reorder point R? Note: Show all steps and calculations (d) what is the total annual cost including the cost of the safety stock? Note: Show all steps and calculations.

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A Discount Appliance Store uses a continuous review system (Q system). One of the company's items ha...

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