Question: what is the optimal order quantity and reorder level? 2. A distributor sells electric can openers. Demand is 6000 units per year and is approximately

what is the optimal order quantity and reorder level?

2. A distributor sells electric can openers. Demand is 6000 units per year and is approximately constant through the year. These can openers cost $20 each, and the annual inventory carrying cost rate is 30 percent. It costs $150 to place an order. All shortages are backordered at a onetime cost of $50 per unit. Historically, demand during a lead time is uniformly distributed between 100 and 200 items

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