A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the followingdemand, lead time, and cost characteristics:Average demand = 130 units per day, with a standard deviation of 12 unitsAverage lead time = 12 days with a standard deviation of 1 day250 days per year in the business yearUnit cost = $28Desired service level = 97.5%Ordering cost $53Inventory carrying cost = 25%a. What is the standard deviation of demand during lead time?b. How many fishing rods should the distribution center carry to provide the desired service level?c. What is the EOQ?d. What is the average cycle stock?

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Answered: A sporting goods company has a…

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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