The demand for staplers at an office supply store is 1,092 per year, the holding cost is $3 per stapler per year, and the setup cost is $15 per order. Lead time is 1 week, and standard deviation of the Lead Time is 5. A cycle –service level of 85 percent is desired.
Determine the period (P) and the Target Inventory (T)
Compare the results with the results with those of the Q-SYSTEM
How much to order under both system?
When to order under both system?
Protection Interval under both system
Safety Stock under both system