Question: 3 . The reorder point [ see equation ( 1 0 . 6 ) ] is defined as the lead - time demand for an
The reorder point see equation is defined as the leadtime demand for an item In cases of long lead times, the leadtime demand and thus the reorder point may exceed the economie order quantity In such cases, the inventory position will not equal the inventory on hand when an order is placed, and the reorder point may be expressed in terms of either the inventory position or the inventory on hand. Consider the economic order quantity model with D C Ch S and working days per year. Identify the reorder point in terms of the inventory position and in terms of the inventory on hand for each of the following lead times: days b days days d days For A B C since r is less than or equal to Q both inventory posistion and inventory on hand equal? D Inventory reorder point? One order of Q Outstanding? The on hand reroder point rQ
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
