Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.;Item cost $10.00;Order cost $250.00;Annual holding cost (%) 33% of item cost;Annual demand 25,750;Average demand 515 per week;Standard deviation of weekly demand 25 per week;Lead time 1 week;Service probability 95%;a. State the order quantity and reorder point.;b. Determine the annual holding and order costs.
Paper#33537 | Written in 18-Jul-2015Price : $34