Fayetteville Sporting Goods sells fishing boats and determin…

Fayetteville Sporting Goods sells fishing boats and determines a reorder point for inventory replenishment using a 90% customer service level.  Average demand during lead time is 150 boats and the variance of the forecast error during lead time is 20 boats.  If Fayetteville Sporting Goods changes to a 95% customer service level, then it will order at a _______________ reorder point because safety stock will be _______________.

If average annual inventory value is $2,000,000, capital cos…

If average annual inventory value is $2,000,000, capital costs are 25%, storage space costs are $70,000, inventory service costs are $67,000, inventory risk costs are $110,000, what is the total cost of carrying an item in inventory for one year expressed as a %?