A manufacturing company Glass Items Manufacturing Limited (GIM), operating under a continuous review system, has an average demand of 150 units per week for the item it produces. The standard deviation in weekly demand is 30 units. The lead-time for the item is seven weeks, and it costs the company $70 to process each order. The holding cost for each unit is $30 per year. The company operates 52 weeks per year. A normal distribution table is appended to this assignment. (iii) Use the information in 2 a. above. What is the economic order quantity at the 98% cycle service level?
A manufacturing company Glass Items Manufacturing Limited (GIM), operating under a continuous review system, has an average demand of 150 units per week for the item it produces. The standard deviation in weekly demand is 30 units. The lead-time for the item is seven weeks, and it costs the company $70 to process each order. The holding cost for each unit is $30 per year. The company operates 52 weeks per year. A normal distribution table is appended to this assignment. (iii) Use the information in 2 a. above. What is the economic order quantity at the 98% cycle service level?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 2
a. A manufacturing company Glass Items Manufacturing Limited (GIM), operating under a
continuous review system, has an average demand of 150 units per week for the item it produces.
The standard deviation in weekly demand is 30 units. The lead-time for the item is seven weeks,
and it costs the company $70 to process each order. The holding cost for each unit is $30 per year.
The company operates 52 weeks per year.
A
(iii) Use the information in 2 a. above. What is the economic order quantity at the 98% cycle
service level?
Please answer the above question
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