Question: DQuestion 1 3 An appliance store carries a specialty model of microwave ovens. Thedemand for the microwave oven is relatively constant at 2 5 0
DQuestion An appliance store carries a specialty model of microwave ovens. Thedemand for the microwave oven is relatively constant at unitsper year. Placing an order costs the store $ regardless thequantity ordered. Carrying one unit over a one year period costs thestore $ The store opens days per year and the lead time forthis item is working days. Because of the special features of themicrowave oven, customers may buy it whether it is currentlyavailable in the store. Hence, the store is considering selling it on aback order basis if it is beneficial. It is estimated that one unit on backorder for a one year period costs the store $Assuming the inventory policy of the appliance store does not allowstock out, determine the reorder point.OO ptsnone of the above
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