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Business, 24.03.2021 16:30 bryson3307

A restaurant uses an average of 100 jars of a special sauce each week. The cost of the jar is $75. Inventory related costs are as follows: Inventory carrying rate is 20%, and ordering costs are $ 100. An examination of restaurant records suggests that weekly demand is approximately normal and has a standard deviation of 5 jars per week. Lead time is three weeks, and the manager wants a stock-out probability that does not exceed 10 percent. Assume a year consists of 52 working weeks. a. Determine the EOQ.
b. Determine the ROP.
c. How much safety stock should be carried?
d. What service level would a reorder point of 110 jars provide?
e. What service level would a reorder point of 100 jars provide?

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A restaurant uses an average of 100 jars of a special sauce each week. The cost of the jar is $75. I...

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