Chapter 9 Question 9

a. Dot Com's optimal order quantity is ______ books (round response to nearest whole number)

b. The optimal number of orders per year is _____ orders.

c. The optimal interval (in working days) between orders is _______ days.

d. The demand during lead time is ______ books.

e. The reorder point is ________ books.

f. The inventory position immediately after an order has been placed is _______ books.

At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $75, and the annual cost of holding is $3.00 per book. Stock is received 6 working days after an order has been placed. No backordering is allowed. Assume 350 working days a year