Illustrate what is the optimal number of orders per year

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Reference no: EM1377326

Q. At Dot Com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10 also the annual cost of holding is $4 per book. Stock is received 5 working days after an order has been placed. No backordering is allowed. Assume 300 working days a year.

a) Illustrate what is Dotcom optimal order quantity?

b) Illustrate what is the optimal number of orders per year?

c) Illustrate what is the optimal interval (in working days) between orders?

d) Illustrate what is the demand during the lead time?

e) Illustrate what is the reorder point?

f) Illustrate what is the inventory position immediately after an order has been placed?

Reference no: EM1377326

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