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:
When an order is placed by Purdue Company, Indiana Company delivers products to Purdue
Company continuously with a delivery rate of units per year. The delivery starts days after
the order date ie LT days
Purdue Companys maximum shortage max is units.
Purdue Company operates 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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