Question: Consider the following conditions: ( 1 ) When an order is placed by Purdue Company, Indiana Company delivers products to Purdue Company continuously with a

Consider the following conditions:
(1) When an order is placed by Purdue Company, Indiana Company delivers products to Purdue
Company continuously with a delivery rate () of 4,800 units per year. The delivery starts 10 days after
the order date (i.e. LT =10 days).
(2) Purdue Companys maximum shortage ( max ) is 20 units.
(3) Purdue Company operates 320 days a year.
(a) Determine the optimal order quantity (
*) of Purdue Company.
(b) Determine the maximum inventory level ( max ) using the optimal order quantity.
(c) Determine the number of operating days between orders using the optimal order quantity.
(d) Determine the reorder point in the number of units when the company orders the optimal quantity

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