Question: An office supply store will begin stocking a new type of pen. Expected monthly demand is 800 units. The store is open 300 days a
An office supply store will begin stocking a new type of pen. Expected monthly demand is 800 units. The store is open 300 days a year. The supplier price schedule per pen is as follows: less than 200, $4.0; greater or equal to 200 and less than 400, $3.8; and greater or equal to 400, $3.6. Ordering cost is $40 and annual holding cost is $6 per pen. Round your answers to zero decimal digits.
The total cost function of this inventory problem is a:
The optimal order quantity for the pen is:
The optimal total annual inventory cost (including purchasing) is:
If the manager decides to make orders of 200 pens each time an order is made, the number of orders per year is:
If the manager decides to make orders of 200 pens each time an order is made, and the lead time to order the pens from the supplier is 2 days, then the reorder point should be:
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