Considering change in its current inventory system

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Reference no: EM131144420

A shoe company is considering a change in its current inventory system. The information regarding the shoes is as follows:

Average demand = 200 pairs/week

Lead time = 3 weeks

Order cost = $65 per order

Unit cost = $20

Carrying charge rate = .20

Desired service level = 95 percent

Standard deviation of weekly demand = 50

Number of weeks per year = 52

Q: What should be the reorder point to have a 95 percent service level?

Reference no: EM131144420

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