A store has collected the following information on one of its famous products. Assume demand for the product during the
Posted: Thu Apr 28, 2022 2:38 pm
A store has collected the following information on one of its famous products. Assume demand for the product during the lead-time is distributed as normal and the store uses continuous review/fixed order quantity system. Below is additional information regarding the product:
Average weekly demand = 200 units Ordering costs = $30/order Annual holding cost per unit = $4 Lead time = 4 weeks (fixed) Number of weeks per year = 50 weeks
Average weekly demand = 200 units Ordering costs = $30/order Annual holding cost per unit = $4 Lead time = 4 weeks (fixed) Number of weeks per year = 50 weeks