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3. A company has the following demand forecast: average weekly demand is 2,500 units, standard deviation of the weekly demand is 122 units. Purchase price is $2.25 per unit, fixed ordering cost is $100 per order, inventory holding cost is 0.5% of the purchase price per week (0.5%*52=26% per year), leadtime is 1.5 weeks. The service level has been chosen such that there will be no stockout during the leadtime with 90% probability. Each unit of backorder incurs $1 penalty cost. The continuous review policy is used. a. Find the order quantity, reorder point, and safety stock (3 points) b. Find the expected annual total cost, including fixed ordering cost, inventory holding cost and backorder cost. c. Find the type II service level (item fill rate) (1 point)