An electronics company has a weekly computer demand of N(2500,500).Lead time for order delivery is 2 weeks.Company orders 10.000 computers when inventory drops to 6000.
a) Calculate safety stock kept by the company according to this system and their annual cost if annual inventory cost for computer 50$/year and ordering cost is 250$/order.
b) What is the service level of company?
c) Calculate optimal order quantity,safety stock and annaul cost for this company for a customer service level of %90 and compare this cost with company's own implementation.