Background of the Case Crew Soccer Shoes Company is considering a change of their current inventory control system for

soccer sh Demand, Lead Time , Order Cost, Holding Cost, Cycle service level, Standard deviation of weekly demand a of weeks per year is given. The company has decided to use a fixed order quantity system.

What is the Inventory Problem? The company is considering a change of their current inventory control system for soccer shoes. They have use a fixed order wuantity system

Inventory Related Information FOQS- the system assumes that all the variables occur at a constant rate and their values are known with For example, the system assumes that the demand, d, occurs at a constant rate and that there is no variab demand. Also, the lead time L is constant, the holding cost His known and fixed, as are stock C. Demand =200 pairs/week. Leadtime = 3 weeks, order cost =$65/order Holding C =$4.00/pair/yr Cycle se = 95%, standard dev of weekly demand = 50, number of weeks per year= 52

entory control system for soccer shoes. The ard deviation of weekly demand and number quantity system.

z= ROP = EOQ=

1.644854 742.4482 581.3777

ystem for soccer shoes. They have decided to

Stock = 300 ROP = 442.45 Stock < ROP The Order is required Conclusions and Recommendation The order is required Because is less than the ROP

and their values are known with certainty. ant rate and that there is no variability in d fixed, as are stock-out cost S and unit price r Holding C =$4.00/pair/yr Cycle service level