Calculating Optimal Order Quantity and Safety Stock Analysis
School
Evergreen Valley College**We aren't endorsed by this school
Course
BUS 280
Subject
Economics
Date
Dec 10, 2024
Pages
5
Uploaded by baohung1601
InputsDemand R4K8Purchase Cost3.2Daily holding cost (%)H 0.16L0Q*20casesT given Q*5days
Please follow the examples in class to set up your own template and anInputsR (demand)500gallonsUnit Cost $ 5.00 Annual Holding Cost (%)25%H (per unit per year)$ 1.25 K (ordering cost)$10 Q* (optimal order)89.4427=sqrt(2*R*K/H)90gallons
nalysis
Demand R2Lead time L10ROP20
Demand Mean3.5Demand STD2Service Level p90%Lead Time L10z1.282Safety Stock8.105ROP43.11