Best Buy Part B) At a Best Buy store, the forecast for the annual demand of a Motorola cell phone is 15600. Demand forecasts are updated weekly and the unit time is one week. Motorola takes 2 weeks to supply an order and the setup cost is $400 per order. The holding cost rate is 10% and one cell phone costs $50. The store manager now finds that the weekly demand is highly random and normally distributed with a mean of 300 and a standard deviation of 200. Best Buy is targeting a service level of 97.73%. (Best Buy Part B) (a) What is the cycle inventory (or half of order quantity)? [Answer format: integer] (b) What is the average inventory (or inventory held on average between orders)? [Answer format: integer] Write your answer(s) as 123, 4567

Calculation of economic order quantity (EOQ):

The formula to calculate economic order quantity is,  

EOQ =  

Where,

D is the annual demand  

Cs is the setup cost

CH is the holding cost

Substitute $15,600 for D, $400 for Cs and $5 for CH in the above formula.

EOQ =  

EOQ =   $1580

Hence, the economic order quantity is 1,580.

(a).  Calculation of total setup cost:

The formula to calculate total setup cost is,

Total setup cost = (D/EOQ) x

Substitute 15600 for D, $400 for and 1580 for EOQ in the above formula

Total setup cost = (15600/1580) x $400

Total setup cost = $3,949.36

Hence, the total setup cost is $3,949.36  

(b).  Calculation of total holding cost:

The formula to calculate total holding cost is,

Total holding cost = (D/2) x

Substitute 15600 for D and $5 for in the above formula

Total holding cost = (15,600/2) x 5

Total holding cost = $3,900

Hence, total holding cost is $3,900

(c).  Calculation of total cost:

The formula to calculate total cost is,

Total cost = D x C + +

Where,

D is the annual demand

C is the cost  

is the total setup cost  

is the total holding cost

Substitute 15600 for D, $50 for C, 3949.37 for and $3,950 for the above formula,

Total cost = (15,600 x $50) + $3,949.37 + $3,950

Total cost = $787,899.37

Hence, total cost of order is $787,899.37

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number