solution
Need help with the Sales Forecast for SKU – AB-1035-G – the yellow section.
| SUMLEV | REGION | DIVISION | STATE | NAME | POPESTIMATE2019 | Percentage of Sales | Annual Sales Forecast (units) | EOQ (units) | ROP (units) | Number of Orders per Year that you’ll make as the Purchasing Agent |
| 10 | 0 | 0 | 0 | United States | 326,092,106 | 100% | ||||
| SUMLEV | REGION | DIVISION | STATE | Note — to compute these values, use the computed results below that are pulled from previous worksheets | ||||||
| 20 | 1 | 0 | 0 | Northeast Region | 55,982,803 | |||||
| 20 | 2 | 0 | 0 | Midwest Region | 68,329,004 | |||||
| 20 | 3 | 0 | 0 | South Region | 125,580,448 | |||||
| 20 | 4 | 0 | 0 | West Region | 76,199,851 | |||||
| Inventory Analysis: | NOTE — data sheets MUST BE FILTERED for a single SKU analysis. | |||||||||
| SKU to analyze = | AB-1035-G | |||||||||
| Demand = | (computed by region, see above) | |||||||||
| Order Processing Cost = | $ 96.34 | per order | ||||||||
| Inventory Holding Cost Rate = | 52.1% | annually | ||||||||
| Cost per Unit = | $ 40.63 | |||||||||
| Lead time = | 39.6 | days | ||||||||
| StDev of Lead Time = | 6.69 | days | ||||||||
| StDev of Demand = | 3.77 | units | ||||||||
| Service level = | 98% | (assumption for high service but avoiding higher costs) | ||||||||
| z = | 2.054 | |||||||||
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