Question: Consider the model Order quantity is 20 units , daily demand is 4 units , and the lead time is 2 days . Holding a
Consider the model Order quantity is 20 units , daily demand is 4 units , and the lead time is 2 days . Holding a unit of the item in inventory for a full year costs 1 5 AED Ordering cost is Assume a year to be 365 days Also assume regular operations every day of the week a . What the reorder point b What is the average inventory level ? . What is the length of an order cycle ? d . What is the annual cost of holding inventory ?
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