## [answered] Merrill Corporation has: Continuous Review System (Q System

Merrill Corporation has:

Continuous Review System (Q System)

5 days per week

52 weeks a year

Demand (D) = 20,020 units/year

Ordering Costs (S) = \$40/order

Holding Costs = \$1/unit/six months

Cycle Service Level = 94.95%

Demand is normally distributed

Standard Deviation of weekly demand = 100 units

Current on-hand inventory is 1040 units

no scheduled receipts

no backorders.

1. EOQ for this item is? 2. The average time, P (in weeks), between orders is: (round to the nearest week)? 3. The safety stock for the Q system is? 4. The safety stock for the P system is? 5. The reorder point, R, in the Q system is (in units)? 6. Annual Holding Costs equal (in Dollars)? 7. Annual Costs for placing orders is (in Dollars)? 8. Assuming that a withdrawal of 15 units just occurred, will you place an order? 9. Assume that we are now operating a P system. Then, the target level, T, is (in units)? 10. The difference between the safety stock for the P system and the Q system is (in units):

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This question was answered on: Sep 18, 2020

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