Infra-red detectors at a constant usage rate

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Reference no: EM131038242

Your company buys infra-red detectors at a constant usage rate of 50 per day 5 days a week from Omicron. These detectors cost $100 each and are delivered without any additional charge. Omicron makes deliveries every working day to all its customers who ordered the working day before (so, LT=1 day). Orders for this item can be triggered directly from your company’s inventory management system, which is electronically connected to Omicron. On receipt, these items are stored in a humidity control room until they are needed.

Qualitatively describe how often should you order this item? Why?

Reference no: EM131038242

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