Course Solutions Uncategorized 2 50 Points Inventory Management Reorder Point Calculation Distributor Large Appliances Ne Q34249303

2 50 Points Inventory Management Reorder Point Calculation Distributor Large Appliances Ne Q34249303

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 6:27 pm
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2. (50 points)-Inventory Management (Reorder Point Calculation) A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific refrigerator in its product line: Cost to place an order Holding cost Cost of refrigerator Annual demand Standard deviation during lead time10 refrigerators Lead time $100 20 percent of product cost per year $500 each 500 refrigerators 7 days Consider an even daily demand and a 365-day year. a) What is the economic order quantity? b) If the distributor wants a 97 percent service probability, what reorder point, R, should be used? (z: 1.90 for 9796)please

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