Question: Reorder Point, ROP = dL + SSd = Average Demand Rate per Time PeriodD = Demand Rate per YearL = Average Lead time ( time
Reorder Point, ROP dL SSd Average Demand Rate per Time PeriodD Demand Rate per YearL Average Lead time time periodsSS Safety Stock z O aLService Levelz Value aL Assuming Lead Time is constant as in Periodic reviewdeg a Standard Deviation of the demandz Number of Standard deviations corresponding to a service levelAverage Inventory Level Q SSQ Order QuantityH Holding Cost Per Year Per UnitS OrderingSetup Cost Per OrderTotal Annual Inventory Cost H HSSEconomic Order Quantity, EOQ EOQOrders TBO DDSHTime Between gallons of paint gallons of paint gallons of paint gallons of paint gallons of paintEndFDIIF
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