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Business, 20.03.2020 02:02 tommyaberman

Sports Apparel (our newest division) makes Uniform shirts using a certain type of cotton. The demand for this cotton is approximately normal, averaging 20 rolls per week, with a standard deviation of 6 rolls per week. Cost per roll is $24; ordering costs are $25 per order; inventory handling cost is $4.00 per roll per year. Acquisition lead time is four weeks. The manufacturing operation works 50 weeks per year, 5-day weeks per week. a. What is the optimal size of an order, if minimization of inventory system cost is the objective? b. What is the safety stock level needed if the desired service level is 90%? c. What is the reorder point if the desired service level is 90%?

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Sports Apparel (our newest division) makes Uniform shirts using a certain type of cotton. The demand...
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