A retailer orders wheat in bags from a supplier. The retailer incurs an ordering cost of $4100 to place an order, independent of order size. The price of a wheat bag is $250. The inventory holding cost for ten months is 21% of the product cost. It takes three weeks to receive the shipments once ordered. The retailer has opened for business for 36 weeks in the last nine months. Sales data has been available for the past few months.

Month	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May
Sales	91	207	201	185	205	99	197	205	186

The retailer ensures a 95% service level. Calculate the retailer’s order quantity, safety stock, reorder level, and average inventory.

Answer rating: 100% (QA)

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