Business, 24.06.2021 16:40 fruitsnaxFTW5535

The annual demand for a product is 15,300 units. The weekly demand is 294 units with a standard deviation of 90 units. The cost to place an order is $28.50, and the time from ordering to receipt is ten weeks. The annual inventory carrying cost is $0.20 per unit. Find the reorder point necessary to provide a 98% service probability. Suppose the production manager is asked to reduce the safety stock of this item by 50%. If she does so, what will the new service probability be?

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The annual demand for a product is 15,300 units. The weekly demand is 294 units with a standard devi...

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