The manager of the Dyson store at Westgate mall is planning for
the inventory of its Supersonic Hair Dryer. Assume a fixed-order
quantity system. Here is the information needed:
Average Demand for the hair dryer: 20 units/week
Lead time = 5 weeks
Order cost = $800/order
Unit cost = $500
Carrying rate = 20%
Standard deviation of weekly demand = 30
Desired service level = 95% (z-value = 1.645)
Number of weeks per year = 52
Calculate the economic order quantity and the reorder point to have
95% service level. Discuss the advantages and disadvantages of the
fixed-order quantity system.
(20 marks)
The manager of the Dyson store at Westgate mall is planning for the inventory of its Supersonic Hair Dryer. Assume a fix
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
The manager of the Dyson store at Westgate mall is planning for the inventory of its Supersonic Hair Dryer. Assume a fix
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!