Business, 06.06.2020 21:01, jesussanchez1445

Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item's current characteristics are: Demand (D)equals13 comma 520 units/year Ordering cost (S)equals$120.00/order Holding cost (H)equals$2.50/unit/year Lead time (L)equals7 weeks Cycle-service levelequals96% Demand is normally distributed, with a standard deviation of weekly demand of 74 units. a. Calculate the item's EOQ.

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Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items...