Business, 18.04.2021 02:20 urieforlife

The IDIS Climate Control Systems Inc. uses a periodic review inventory management system to order a custom-made quick connector adapter from their supplier. The demand for the quick connector adapter is 7800 units a year with a standard deviation of 30 units per week. The inventory holding cost per adapter per year is $15 and target product availability is 95%. The lead time for the adapter 12.5 months. The trucking company charges a fixed $300 per dispatch. Given this information calculate (assume one year is 52 weeks, and one month is four weeks, round the results to the nearest integer for Part b, c and d) a) Review interval in weeks (use three decimal place accuracy)
b) Maximum inventory level (M) for the quick connector
c) Average inventory level for the quick connector
d) Number of orders in a year

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