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Problem - Use the information to answer the following questions:
Purchase unit = 10-lb poly bag (ground beef)
Usage rate = 170-lb per day
Order Period = 4 days
Lead time = 1 day
Safety level = 1 day
Required -
a. How many pounds should be ordered at the order point? How many 10-pound poly bags should be purchased?
b. The order is placed when there are 390 pounds available. How many purchase units should be ordered?
c. What is the usage rate in the four-day order period?
d. How many 10-pound poly bags are used daily and during the order period?
e. How many purchase units are included in the lead time and safety level factors?
f. What is the maximum number of pounds to be available?
g. How many Purchase units should be purchased at the order point?
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