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Author Question: Your firm uses a continuous review system (Q system), in which the inventory position is updated ... (Read 75 times)

joblessjake

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Your firm uses a continuous review system (Q system), in which the inventory position is updated after every transaction. The firm operates 52 weeks per year. One of the items has the following characteristics:

Demand = 14,560 units per year
Ordering cost = $40 per order
Holding cost = $6 per unit per year
Lead-time = 2 weeks
Standard deviation in weekly demand = 100 units
Cycle-service level = 80%

If Q is made equal to the EOQ, what are the desired values for Q and R?
Q is between 439 and 443, and R is between 678 and 682.
Q is between 65 and 69, and R is between 362 and 366.
Q is between 65 and 69, and R is between 398 and 402.
Q is between 439 and 443, and R is between 559 and 563.


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Marked as best answer by joblessjake on Apr 18, 2020

randomguy133

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joblessjake

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Reply 2 on: Apr 18, 2020
Excellent


bimper21

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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