Assuming that you are a supply chain manager of a local electric bike shop. In the past 5 years, you monitor the sales and inventory level every week and order electric bikes from suppliers. se EOQ and Continuous Inventory Review Policy to manage inventories. COVID-19 has affected your community and the number of confirmed cases has been increasing recently. Please analyze which component(s) of EOQ (D, K, or H) will be affected and how COVID-19 will affect the economic order quantity (increase, decrease, or no change) and average inventory level. You need to provide logic for your arguments. Based on the historical data, you found that the demand for an electric bike is 20 units per week and the standard deviation of demand is 3 units. The lead time for an order is normally 4 weeks. In addition, you are expecting a 95% service level. The order cost is $2 per order and the holding cost per unit per week is $5. Based on EOQ theory, what will be the best order quantity that minimizes the total cost? Please show all calculations and round to the closest whole number Based on the information provided in question b, to achieve the 95% service level, how many units of safety stock will you carry? Please show all calculations and round up to a whole number. Based on the information provided in question b, what will be the re-order point?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Please Answer all parts of the questions.

Assuming that you are a supply chain manager of a local electric bike shop. In the past 5 years, you monitor the sales and inventory level every week and order electric bikes from suppliers. se EOQ and Continuous Inventory Review Policy to manage inventories.

COVID-19 has affected your community and the number of confirmed cases has been increasing recently. Please analyze which component(s) of EOQ (D, K, or H) will be affected and how COVID-19 will affect the economic order quantity (increase, decrease, or no change) and average inventory level. You need to provide logic for your arguments.
Based on the historical data, you found that the demand for an electric bike is 20 units per week and the standard deviation of demand is 3 units. The lead time for an order is normally 4 weeks. In addition, you are expecting a 95% service level. The order cost is $2 per order and the holding cost per unit per week is $5. Based on EOQ theory, what will be the best order quantity that minimizes the total cost? Please show all calculations and round to the closest whole number
Based on the information provided in question b, to achieve the 95% service level, how many units of safety stock will you carry? Please show all calculations and round up to a whole number. Based on the information provided in question b, what will be the re-order point?

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