A retailer buys TVs from a wholesaler and sells them to customers. The retailer incurs an ordering cost of $370 per order when he places the order. The annual holding cost for a TV is $96. The retailer follows a 95% fill rate (service level). The retailer wants to find the order quantity, reorder level, and average inventory with safety stock. The following table summarizes the demand and the lead time.

Month	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug
Sales (in units)	149	159	167	170	162	175	114	188	154
Leadtime(weeks)	3	1	4	3	2	4	4	1	3

Answer rating: 100% (QA)

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