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Q. Jim Gilbert's Computer Store in Lake Mary sells a printer for $200. Demand is constant during the yr also annual demand is forecasted to be 600 units. Holding price is $20 per unit per yr, whereas the price of ordering is $60 per order. Presently, the organization is ordering 12 times per yr (50 units each time). There are 250 working days per yr also the lead time is 10 days.
a) Given the present policy of ordering 50 units at a time, illustrate what is the total of the annual ordering price also the annual holding price?
b) If the organization used the absolute best inventory policy, illustrate what would be the total of ordering also holding prices?
c) Illustrate what is the reorder point?
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