Continuous review inventory management policy

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Reference no: EM133771670

Question

Consider a warehouse that follows a continuous review inventory management policy for a product. The product has an average weekly demand of 1000 units and the reorder point is set at 2.5 times the average weekly demand. Suppose the average flow time for the product in the warehouse is 3 weeks (at 95% CSL) and the procurement lead-time is 1.5 weeks, then on average how many orders does the warehouse place in one year? The coefficient of variation of demand is 0.2.

Reference no: EM133771670

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