Question: Weekly demand for a VR Headset retailer has a mean of 2 0 units. The supplier has a lead time of 1 5 weeks. The

Weekly demand for a VR Headset retailer has a mean of 20 units. The supplier has a lead time of 15 weeks. The cost of placing an order to the supplier each time is $40, and annual holding cost for one unit is 20 percent of the Cost of Goods. Each headset costs the retailer $1,040. Assume 52 weeks in a year.
Assume there is no variation with a steady demand (Chapter 12).
How many orders are we going to place for the year if we order 16 headsets in each order? Again, assume steady demand and that we're meeting demand.

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