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1. Let us suppose weekly demand is 200 units. The cost per unit is $2.50, and you sell the product for $4.00. Assuming that lead time is 18 days, holding cost of 20%, and ordering cost of $22. What is the optimal reorder point, r?
2. Let us suppose weekly demand is 200 units. The cost per unit is $2.50, and you sell the product for $4.00. Assuming that lead time is 18 days, holding cost of 20%, and ordering cost of $22. What is the optimal order quantity?
3. Assume the following:
Fixed Ordering Cost: $40
Unit product cost to obtain: $3.00
Sell Price: $8.00
Annual holding cost: 25%
Daily demand: 30 units
Daily demand variance: 4 units
Leadtime: 7 days
Service level: 95%
What is the optimal order quantity?
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