Question

Q.2 (a) Given the following information, formulate an inventory management
system. The item is demanded 50 weeks a year.
(07 marks)
Item Cost
$10
Standard deviation of
Weekly demand
Order Cost
$250
25 per week
Annual holding cost (%)
33% of item cost Lead time
1 week
Annual demand
25,750
Service probability
95% 21.65)
Average demand
515
per
week
a. State the order quantity and reorder point.
b. Determine the total inventory costs.
c. If a price break of $50 per order was offered for purchase quantities of over 2.000.
would you take advantage of it? How much would you save annually?​

Answer 1

Answer:

SORRY I DONT UNDERSTAND WHAT YOU TRUING TO ASK FOLLOW ME AND AGAIN ASK QUESTION BY GIVING 1 BY 1

Answer 2

Answer:2000 unit

Step-by-step explanation: