A company operates 365 days a year and its annual demand for a product is 18,250 units. The company estimates that the standard deviation for daily demand is 15 units. The cost to place an order is $31.20 and the time from ordering to receipt is 36 days. The annual inventory carrying cost is $0.10 per unit. Determine the optimal ordering quantity per order and find the reorder point necessary to provide a 98 percent service probability

Answer rating: 100% (QA)

Annual demand D 18250 units Number of working days 365 ... View the full answer