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A company begins a review of ordering polices for its continuous review system by checking the current policies t Demand (D) 85 unts/week (Assume 52 weeks per year) Ordening and setup cost (S)-$75/order Holding cost 00-$16/undyear Lead time (L) 5 work(s) Standard deviation of weekly demand 22 unts >Cycle-service level 50 percent EOQ 207 units mple of SKUS ollowing Using the above information, develop the best policies for a penodic review system Refer to the standard normal sable for z values a What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number) b. To provide a 98 percent cycle service level, the average safety stock sunts (Enter your response rounded to the nearest whole number) To provido a 98 percent cycle-service level, the target inventory level is unes (Enter your response rounded to the nearest whole number)

A company begins a review of ordering polices for its continuous review system by checking the current policies t Demand (D) 85 unts/week (Assume 52 weeks per year) Ordening and setup cost (S)-$75/order Holding cost 00-$16/undyear Lead time (L) 5 work(s) Standard deviation of weekly demand 22 unts >Cycle-service level 50 percent EOQ 207 units mple of SKUS ollowing Using the above information, develop the best policies for a penodic review system Refer to the standard normal sable for z values a What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number) b. To provide a 98 percent cycle service level, the average safety stock sunts (Enter your response rounded to the nearest whole number) To provido a 98 percent cycle-service level, the target inventory level is unes (Enter your response rounded to the nearest whole number)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUS Following are the characteristics of one tem Demand (D)=85 units/week (Assume 52 weeks per year) Ordening and setup cost (S) $75/order Holding cost (H)-$16/und/year Lead time (L) 5 week(s) Standard deviation of weekly demand 22 units Cycle-service lovel-90 percent >EOQ-207 units Using the above information, develop the best policies for a periodic review system Refer to the standard normal table for z-values a. What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number) b. To provide a 98 percent cycle-service level, the average safety stock is To provide a 98 percent cycle-service level, the target inventory level is unts (Enter your response rounded to the nearest whole number) units (Enter your response rounded to the nearest whole number)
Transcribed Image Text:A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUS Following are the characteristics of one tem Demand (D)=85 units/week (Assume 52 weeks per year) Ordening and setup cost (S) $75/order Holding cost (H)-$16/und/year Lead time (L) 5 week(s) Standard deviation of weekly demand 22 units Cycle-service lovel-90 percent >EOQ-207 units Using the above information, develop the best policies for a periodic review system Refer to the standard normal table for z-values a. What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number) b. To provide a 98 percent cycle-service level, the average safety stock is To provide a 98 percent cycle-service level, the target inventory level is unts (Enter your response rounded to the nearest whole number) units (Enter your response rounded to the nearest whole number)
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