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Unformatted text preview: item is demanded 50 weeks a year. Item cost: $10; order cost $250; annual holding cost: 33% of item cost; weekly demand: 515units; standard deviation of weekly demand: 25 units/week; lead time: 1 week; service level: 95%. a) State the order quantity and reorder point. b) Determine the annual cost. c) If a price break of $50 per order was offered for purchase quantities of over 2000, would you take advantage of it? How much would you save annually?...
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 Spring '08
 Dr.SarahJ.Wu
 Standard Deviation

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