cl18_Inventory_Management_II

The weekly demand is 300 units with a standard

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Unformatted text preview: an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit. Find Find the optimal ordering quantity and the reorder point necessary to provide a 98 percent service level. (Fact: NORMSINV(0.98) = 2.05) Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the new service level be? hi 50 If (Hint: (Hint: you can write the answer using the NORMSDIST function) 28 Next Class Next Class Inventory Management III – Fixed-Time Period Model Time Period Model 29 Man Yu - Spring 2009...
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This note was uploaded on 02/20/2013 for the course ISOM 161 taught by Professor Manyu during the Fall '09 term at HKU.

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