value. The leading time of ordering is constant, LT=1.5 month. The company wants the service level to achieve 75%. Please give the optimal inventory policy for the company. (The reorder quantity and ROL. we have Z=0.67 for SL>=75%)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Question 5
A company sales product A to its customer. The company forecasts the monthly
demand of product A d=11107 units, sa-3099 units. The cost of A is UC=0.11 $/unit,
the reorder cost RC = 10 $/order, the holding cost of product A is 20% yearly of its
value. The leading time of ordering is constant, LT=1.5 month. The company wants the
service level to achieve 75%. Please give the optimal inventory policy for the company.
(The reorder quantity and ROL, we have Z=0.67 for SL>=75%)
Transcribed Image Text:Question 5 A company sales product A to its customer. The company forecasts the monthly demand of product A d=11107 units, sa-3099 units. The cost of A is UC=0.11 $/unit, the reorder cost RC = 10 $/order, the holding cost of product A is 20% yearly of its value. The leading time of ordering is constant, LT=1.5 month. The company wants the service level to achieve 75%. Please give the optimal inventory policy for the company. (The reorder quantity and ROL, we have Z=0.67 for SL>=75%)
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