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A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its? 1-irons, which have the following? characteristics:
Demand ?(D) = 2,000 ?units/year, normally distributedStandard deviation of weekly demand? = 3 unitsOrdering cost? = ?$ 50 ?/orderHolding cost? (H) = $ 6.00?/unit per yearDesired service level? = 90 ?%Lead time? (L) = 5 weeks
-If the company uses a periodic review system, what should the review period (P) be (in weeks)? -If the company uses a 2-week ordering period (P=2 weeks), how much safety stock should the company carry? -Suppose the company holds 20 units in safety stock, and uses a two-week ordering period. It is time to place an order, and the manager counts a current net inventory position of 100 units. How many units should be ordered?
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