11.5 If sigma is 150 units, and the demand during the lead time is 200 units, calculate the safety stock and order point for: a. A 50% service level. b. An 85% service level.

A manufacturer’s annual demand is 6000 units. The current units per order is $100. The setup cost is $50 per order and the holding cost is $7 per unit. The cost per unit is $2.50. The  Number of work days is 250 per year.   What is the annual setup cost? What is the annual holding cost?  What is the optimal order quantity (EOQ)? Using the EOQ, how many orders should be placed per year? What is the interval between orders? What is the inventory administration cost? What is the total cost of inventory?

Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time varies

The daily demand for printer paper at the School of Business is approximately normal with a mean of 15.2 boxes and a standard deviation of 1.6 per day. The Administrative Assistant reviews the inventory every 30 days, and the lead time is 5 days. The division set a policy of satisfying 96% of the demand for paper. If there are 125 boxes of printer paper in inventory at the beginning of this review period, how many boxes of printer paper should be ordered? What is the variance of demand during the review period plus the lead-time period? What is the standard deviation of demand during the review period plus the lead-time period?   A. Variance = 76.80               Standard deviation = 8.76   B. Variance = 89.60               Standard deviation = 9.47   C. Variance = 9.47               Standard deviation = 89.60   D. Variance = 12.8               Standard deviation = 3.58

ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. A True B False

Please explain me in brief about Pros and Cons of Re-Order Point Control and Re-Order Cycle Control Inventory control Systems.