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Your firm uses a continuous review system and operates 52 weeks per year. One of the SKus has the following characteristics.
Demand is
Current on-hand inventory is 1,040 units, with no
- Calculate the item’s EOQ. What is the average time, in weeks, between orders?
- Find the safety stock amid reorder point that provide a 95 cycle-service level.
- For these policies, what are the annual costs of (i) holding the cycle inventory and (ii) placing orders?
- A withdrawal of 15 units just occurred. Is it time to reorder? If so, how much should be ordered?
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