Calculate minimum stock the buyer needs to carry

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Question - Every Monday, a discount store's men's underwear buyer checks his assortment to place reorders for his basic items. The following information is used for him to calculate reorder amounts.

 

White Briefs

Gray Briefs

Rate of Sale

30 dozen per week

20 dozen per week

Reserve Stock

1 week

1 week

On hand

340 units

180 units

On order

8 dozen

5 dozen

Delivery period

1 week

1 week

Reorder period

1 week

1 week

Required -

1. Calculate minimum stock (in units) the buyer needs to carry in his store for White and Gray briefs.

2. Calculate maximum stock (in units) the buyer can carry in his store for White and Gray briefs.

3. Calculate OTB units (i.e., how many units the buyer needs to order) for White and Gray briefs.

Reference no: EM133172545

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