$.$ Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field

service offices. The yearly demand for these connectors is $18,000$ units. Southeastern estimates its

annual holding cost for this item to be $$75$ per unit. The cost to place and process an order from the

supplier is $$300.$ The company operates $300$ days per year, and the lead time to receive an order from

the supplier is $3$ working days.

a$)$ Find the economic order quantity.

b$)$ Find the annual holding costs.

c$)$ Find the annual ordering costs.

d$)$ What is the reorder point?

Inventory management with multiple ordering opportunities and uncertain demand

$3.$ A gourmet coffee shop in downtown San Francisco is open $200$ days a year and sells an average of

$75$ pounds of Kona coffee beans a day. Daily demand can be assumed to be distributed normally with a

Supply Chain and Operations Management

BUS $5025$