Determine the economic order quantity and the reorder point

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Reference no: EM13964020

A production company has collected the following information on one of its products The demand is 4 500 units per year The standard deviation of the weekly demand is 12 units The ordering cost is $40 per order The holding cost is $3 per unit per year The cycle-service level is 90% (assume z for 90% is 1,28) The lead-time is 2 weeks and the company works 52 weeks per year If the company uses the continuous review system to control the inventory, determine

(a) the economic order quantity,

(b) the reorder point,

Reference no: EM13964020

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