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Meena Distributors has an annual demand for an airport metal detector of 1,360 units. The cost of a typical detector to MeenaWhat is the EOQ without the discount? EOQ = 30.3 units (round your response to one decimal place). Since the total cost withBased on available information, lead time demand for PC jump drives averages 53 units (normally distributed), with a standarda) What value of Z should be applied? 1.28 b) How many drives should be carried as safety stock? 6 units (round your response

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Answer #1

A. EOQ = SQRT(2 * DEMAND * ORDERING COST / HOLDING COST)

EOQ = SQRT(2 * 1360 * 27 / 72) = 31.94

B. Z = 1.6449 (for 95% service level)

Safety stock = Z * standard deviation of lead time demand

= 1.6449 * 5 = 8.2245

ROP = Lead time demand + Safety stock

= 53 + 8.2245 = 61.2245

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