}Buyers Products Company distributes an item known as a tie bar, which is a U-bo
ID: 436726 • Letter: #
Question
}Buyers Products Company distributes an item known as a tie bar, which is a U-bolt used on truck equipment. The following data have been collected for this item held in inventory. }Monthly demand forecast , d 11,107 units }Std. error of forecast, sd 3,099 units }Replenishment lead time, LT 1.5 months }Item value, C $0.11/unit }Cost for processing vendor order, S $10/order }Carrying cost, I 20% per year }In –stock probability during lead time, P 75% }Buyers Products Company distributes an item known as a tie bar, which is a U-bolt used on truck equipment. The following data have been collected for this item held in inventory. }Monthly demand forecast , d 11,107 units }Std. error of forecast, sd 3,099 units }Replenishment lead time, LT 1.5 months }Item value, C $0.11/unit }Cost for processing vendor order, S $10/order }Carrying cost, I 20% per year }In –stock probability during lead time, P 75%Explanation / Answer
$367.03 per year service level =0.98
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