Managing Operations 19836599
The manager at the Challenger store in Clementi is planning for the inventory of their printers. Average demand for the printers is 50 units per day, ordering cost is $50 per order, unit price is $100, lead-time is 2 weeks, carrying/holding rate is 20%, and standard deviation of demand is 20 units per day. Consider 365 days per year. Assume the manager uses a fixed order quantity system. Compute the economic order quantity and the reorder point to have 90% service level. Explain your result.
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