inventory Planning and control

Using the above data, answer the following questions (show your work):

• Calculate Q* (economic order quantity).
• Calculate ROP (reorder point) with and without safety stock for Reorder Point Model.
• Model.
• Calculate T (target order-up-to level) for a Fixed Period Model.

Calculate P (time between orders) for a Fixed Period BUS 364 Supply Chain Management

Chapter 4: Inventory Planning Homework

Directions: Using the provided data, answer all the questions. SHOW ALL YOUR WORK. Upload a copy (Word, PDF, or Excel) or a photo (GIF or JPG) to the drop box in Brightspace by the due date.

d

Weekly Demand

2000 units

# weeks per year

52 weeks

S

Setup or Order Cost

$100

H

Holding or Carrying Cost

10% per unit per year

C

Cost of the Item

$10 per unit

L

Lead Time

2 weeks

Z (.90)

Desired Service Level of 90%

1.3

Standard Deviation of Demand During Lead Time 

200 units