A sporting goods company has a distribution center that, Ask an Expert

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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 = 230 units per day, with a standard deviation of 22 units Average lead time = 22 days with a standard deviation of 1 day 250 days per year Unit cost = $30 Desired service level = 97.5% Ordering cost = $57 Inventory carrying cost = 20%

1) Calculate annual ordering cost

2) Calculate average cycle stock.

3) Calculate average inventory.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93114318

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