Question: COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCK An Apple store has a demand (D) for 8,000 iPhones per year. The firm

 COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCK

COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCK An Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year. On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. The store wants to calculate the reorder point without a safety stock and then with a one-day safety stock. APPROACH c First compute the daily demand and then apply Equation (12-6) for the ROP. Then compute the ROP with safety stock

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