Question: Using the definitions and formulas provided, lets look at an example: A local Pizza joint uses 40 cases of mozzarella cheese every week. The lead-time

 Using the definitions and formulas provided, lets look at an example:

Using the definitions and formulas provided, lets look at an example: A local Pizza joint uses 40 cases of mozzarella cheese every week. The lead-time it takes from the supplier to the Pizza joint is 4 weeks. Based on past experience, the Pizza joint has set its buffer inventory coverage of all items at one week of units. Finally, because the Pizza joint is not a large operation, they do not like to receive too many deliveries. Therefore, they place only 10 orders per year. Using all of this information, how can you determine the buffer inventory, reorder level, order quantity, progress level, and maximum inventory for the Pizza Joint? Lead Time: Buffer Inventory: Reorder Level: Order Quantity: Progress Level: Maximum Inventory

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