What probability would you assign to each cut-off level

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Question 1. What is the inventory carrying rate?

Question 2. What is the current number of orders per year if Janet is making 4 orders per week?

Question 3. What is the economic order quantity?

Question 4. What will be the number of orders per year based upon the economic order quantity?

Question 5. Assuming an overall 90% certainty level, what is the reorder point?

Question 6. How would you perform the ABC analysis? Based on the ABC analysis, what would be your cutoff level? What probability would you assign to each cut-off level? How would this change the reorder point? Make sure to explain your reasoning and support your solutions.

Question 7. As their consultant, what would be your recommendations to the Kysons?

Reference no: EM133645551

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