Question: There is a lead time ( the time between when the order is placed and the time it arrives at the store ) associated with
There is a lead time the time between when the order is placed and the time it arrives at the store associated with
every order. The quoted lead time is days, but the actual lead time is a discrete uniform distribution use google if you
must between and days. There are currently model s in stock.
Mr Smith assigns you, the purchasing manager, to determine the order quantity, Q and reorder point, R that best
reduces the combined monthly costs of inventory, ordering, and stock out. The order quantity, Q is a fixed quantity
that will be ordered every time. The reorder point, R is the inventory level that triggers an order. If the inventory at the
end of the day is below the reorder point, an order is placed for Q units.
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