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March 27, 2015

Homework Help: math

Posted by Candace on Tuesday, July 17, 2012 at 9:52am.

A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics:
Average demand = 95 units per day, with a standard deviation of 18 units
Average lead time = 14 days with a standard deviation of 2 days
250 days per year
Unit cost = $30
Desired service level = 95%
Ordering cost = $55
Inventory carrying cost = 20%


What is the???
Annual ordering cost
Annual inventory carrying cost
Annual product cost
Total cost
Average cycle stock
Average inventory

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