The Cosmopolitan store wants to use a periodic review system for its basic apparel product. The product has an annual demand of 7,200 units. Their order cost is $75, and their inventory carrying cost is 18% per dollar per year. The cost of each product is $20. The purchase order lead time is 1 week, and the average daily demand is 18 units, with a standard deviation of 4 units. Cosmopolitan would like to maintain a 99% service level.
-William's food company uses the periodic system to order cans of Cajun seasoning every 30 days. It typically takes the supplier 10 days to resupply William. Sales average 8 units per day, with a standard deviation of 2 units per day. William does not carry any safety stock of Cajun seasoning. If he runs out for a period of time, he doesn't care. William just counted his inventory of Cajun seasoning and found 22 cans on the shelf. How many cans should William order?

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The Answer of The Cosmopolitan store wants to use a periodic review system for its basic apparel product. The product has an annual demand of 7,200 units. Their order cost is $75, and their inventory carrying cost is 18% per dollar per year. The cost of each product is $20. The purchase order lead time is 1 week, and the average daily demand is 18 units, with a standard deviation of 4 units. Cosmopolitan would like to maintain a 99% service level.
-William's food company uses the periodic system to order cans of Cajun seasoning every 30 days. It typically takes the supplier 10 days to resupply William. Sales average 8 units per day, with a standard deviation of 2 units per day. William does not carry any safety stock of Cajun seasoning. If he runs out for a period of time, he doesn't care. William just counted his inventory of Cajun seasoning and found 22 cans on the shelf. How many cans should William order?

The Cosmopolitan Store Wants to Use a Periodic Review System