Question: A warehouse purchases a certain component and supplies it to retailers. The warehouse operates 5 days / week , 5 2 weeks in a year.
A warehouse purchases a certain component and supplies it to retailers. The warehouse operates daysweek weeks in a year. Only when it is open that the the orders can be received. The desired service level is The following data are available The average daily demand units Standard deviation of daily demand units Lead time days Inventory carrying cost Rs unityear Ordering Cost Rs order a What Order Quantity and ROP should be used? b If onhand inventory is units, there is an open order for units and there is a Backorder for use of units, should a new order be placed? If yes, for how much quantity?
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