Economics
ONLY FINAL ANSWERS (FINAL NUMBERS) NEEDED!
A retailer sells dog houses. The company currently orders 300 pieces of the product at a time. The
average demand is 35 pieces per week with a 15% standard deviation. Delivery time averages 4 weeks
with a 2 week standard deviation. Management set a 90% customer service level (z = 1.28). It costs $
150 to place an order, regardless of the number of pieces, and $ 10 to keep a product in stock for one
year. Answer the following questions! (Where the solution is not an integer, please round up the partial
and final results to a maximum of two decimal places.)
a. How much should be the safety stock for the company in order to keep the required customer service
level?
b. At what level should be the reorder point?
c. How much is the current ordering policy's total cost?
d. Determine if the company is ordering the economic order quantity or not! If not, how much is the
EOQ?
e. How much is the total cost of if the company is ordering the economic order quantity?
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hmmm hard u are giving less [points for a great anser
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