As assistant manager of a soccer specialty store you have been asked to review the inventory costs associated with the store's best selling soccer shoe. The information you have available concerning this shoe follows: Average Demand =18 pairs per week; Standard Deviation of demand = 6 pairs Lead time for ordering shoes= 1 week; Ordering cost = $32 per order Cost of a pair = $90; Carrying cost per pair per year = 10% of cost of per pair Service level =98%, Z =2.05; The store operates 50 weeks per year.



Answer :