The Super Discount Store (Open 24 Hours a Day, Every

question 49

Essay

The Super Discount store (open 24 hours a day, every day) sells 8-packs of paper towels, at the rate of approximately 420 packs per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $.50. The cost to place an order for more is $20 and it takes four days for an order to arrive.
a.Find the optimal order quantity.
b.What is the reorder point?
c.How often should an order be placed?

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Definitions:

Minnesota

A state in the Upper Midwest and northern regions of the United States, known for its lakes and forested areas.

Scanner Data

Information collected at the point of sale through barcodes or RFID tags, used for inventory management and consumer behavior analysis.

Business

The practice of making one's living or making money by producing or buying and selling goods or providing services.

Focus Group

A qualitative research method where a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.