22.Store B orders on a weekly basis. Its weekly demand is 50 units with a standard...

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22.Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost

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Answer 1

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Answer 1	Reorder point = weekly demandlead time + ZSD*(Lead time)^.5
	Value of Z at 99% = 2.33
	Reorder point = 502 + 2.335*2^.5 = 116.48
	So,
	Weekly inventory holding cost = 116.48*10 = $1164.8

Answer 2	Weekly inventory holding cost per unit = 1164.8/50 = $23.3

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Answer 2

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