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Home Q & A Board Science-Related Homework Help Mathematics
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Nalu Nalu
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6 years ago
The company is using a lot size of 700 units per order. Calculate the safety stock required for a cycle service level of 97.5. In addition, what is the cost difference between the current policy and using the EOQ lot size? (safety stock/cost) The expected annual demand is 123,670 units. The standard deviation for a week is 345 units. The ordering cost is 200 and the carrying cost is 3.00 per unit per year. In addition, the lead time is 3 weeks and there are 52 weeks per year.
 a. 1171 units/24,202 c. 1171 units/24,202
  b. 8306 units/36,384 d. 4060 units/12,182
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DCAV1DCAV1
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6 years ago
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