Question: A retailer supplies a small storefront outlet with a unique product. In a sense, the retailer serves as the warehouse for this outlet. The
A retailer supplies a small storefront outlet with a unique product. In a sense, the retailer serves as the warehouse for this outlet. The retailers' purchasing lead time is 2 weeks and the lead time for the outlet from the retailer is also 2 weeks, primarily due to order handling time. Assume that forecast errors are normally distributed with the o for 1 week being 10 units, and that o = to. The annual demand rate is 2,000 units, and the following data have been gathered: vw $6/unit, V = $8/unit, r = 0.24 $/$/year, n = 2, or the retailer orders two batches of the outlets order quantity at one time. The outlet's order quantity is QR = 200 units. Finally, suppose that the fractional charge per unit short, B, is set at 0.4. Find the reorder point for both locations. =
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