Question: The H.A.L. Computer Store sells a printer for 400.00. Demand for this is constant during the year, and annual demand is forecasted to be 1,350
The H.A.L. Computer Store sells a printer for 400.00. Demand for this is constant during the year, and annual demand is forecasted to be 1,350 units. The holding cost is 20.00 per unit per year, while the cost of ordering is 90.00 per order. Currently, the company is ordering 12 times per year (92 units each time). There are 270 working days per year and the lead-time is 8 days. What should be the reorder point?
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