An Office Supply Store Open 5 Days a Week Must

question 25

Essay

An office supply store open 5 days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 250 boxes and when orders are placed, then entire shipment arrives at once. The cost per box is $22 and the inventory holding cost is 30%. Orders are placed at a cost of $40 each, including preparation time and communication charges, and the lead time is 2 days.
a.Find the optimal order quantity.
b.What is the reorder point?
c.How often should an order be placed?
d.What is the cycle time?

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Definitions:

Synergy

The interaction or cooperation among two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Coalitions

Groups formed within an organization by individuals or teams sharing common goals or interests, often to gain influence or achieve a specific objective.

Norming Stage

A phase in team development where members establish standards and norms, enhancing unity and cooperation.

Cliques

Small, exclusive groups of people who share common interests or views, often excluding others.