Daily Demand=15, Annual Demand=2130,Service Factor=1.88(assumed),Re-order cost=60$, Holding cost= 11, Std Deviation=3…Please do calculations and do findings, limitations and oppurtunities.
For the particular product that you have selected, calculate the ROP, SS, and EOQ. For these calculations, you will need to make reasonable assumptions such as lead time (i.e. including time to order, ship, receive, put away, etc.) and also the cost of ordering (i.e. the expense of ordering, receiving, putaway, accounts payable, etc.). You must focus on making as many reasonable assumptions as is required to make the calculations accurate. Unsubstantiated estimates will not be accepted (i.e. assuming order cost is $250 each time). Offer any findings or considerations that the organization should be aware of in terms of managing this inventory. This is an open ended challenge to the group to consider additional factors that arose in your groups discussion on managing this inventory including any limitations and opportunities. This challenge is intended to have you interpret the calculations, recognize their importance and consider any opportunities the organization may have regarding managing the inventory based on the learnings from this course.