Question 5A company sales product A to its customer. The company forecasts the monthlydemand 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 itsvalue. The leading time of ordering is constant, LT=1.5 month. The company wants theservice 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%)

In the above information,monthly demand of product a annual demand of product A Cost of Raw Material…

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%)

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

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

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