Part 2 Calculation QuestionsAs assistant manager of a soccer specialty storeyou have been asked to review theinventory costs associated with the store's bestselling soccer shoe. The information you haveavailable concerning this shoe follows:Average Demand =18 pairs per week; StandardDeviation of demand = 6 pairsLead time for ordering shoes= 1 week; Orderingcost $32 per orderCost of a pair = $90; Carrying cost per pair peryear 10% of cost of per pairService level =98%, Z =2.05; The store operates50 weeks per year.=(1) If the economic lot size model is applied, whatis the optimal order cost (Q) andtotal cost per year(TC) for the best selling soccershoe?(2) If the continuous review inventory policy -(Q,R) policy is applied, what isthe record level R for the bestselling soccer shoe?(3) If the periodic review inventory policy- bask-stock level policy is applied and the managerchecks the stock level every 3 weeks, what is thebase-stock level the store should maintain?

Given data: Average weekly demand (d) = 18 pairs/week Standard Deviation of demand = 6 pairs Lead…

Answered: Part 2 Calculation Questions As…

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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