Local retailer of plumbing? supplies

Assignment Help Operation Management

Reference no: EM132230987

Leaky? Pipe, a local retailer of plumbing? supplies, faces demand for one of its SKUs at a constant rate of 20,400 units per year. It costs Leaky Pipe ?$15 to process an order to replenish stock and $5.00 per unit per year to carry the item in stock. Stock is received 2 working days after an order is placed. No backordering is allowed. Assume 275 working days a year.

a. Leaky Pipe's order quantity is _______.

b. The optimal number of order's per year is _____.

c. The optimal interval (in working days) between orders is ______ days.

d. The demand during lead time is ____ units.

e. The reorder point is ______ units.

f. The inventory position immeadiately after an order has been placed is ________ units.

Reference no: EM132230987

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