Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost $10.00 VALUE Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand Lead time Service probability $250.00 per order 33% of item cost 25,750 units 515 per week 25 units 1 week 95%

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost $10.00 VALUE Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand Lead time Service probability $250.00 per order 33% of item cost 25,750 units 515 per week 25 units 1 week 95%

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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