Hardware store decides to use the eoq with shortages model

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The manager of a hardware store decides to use the EOQ with shortages model to determine the ordering policy for tape measures. Using economic considerations, the manager determines that she should use an order quantity of Q = 30 and have a maximum shortage of b = 3. The lead time for her supplier to deliver an order is L working days, where there are six working days in a week. (Essentially, you can ignore Sundays.) The weekly demand is for 20 tape measures. What reorder point should the manager use if L = 3; if L = 5; if L = 10?

Reference no: EM131106474

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