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:

Anthony Johnson

An African American who became one of the first African property owners and one of the first to have his right to own a slave legally recognized in the British American colonies.

Olaudah Equiano

An African writer and abolitionist who gained freedom from slavery and wrote an autobiography detailing his experiences, significantly influencing the abolitionist movement in Britain.

Jamestown

The first permanent English settlement in North America, founded in 1607 in present-day Virginia.

Witch Trials

Legal proceedings and persecutions, most famously in Salem, Massachusetts in 1692, targeting individuals accused of witchcraft, often resulting in conviction and execution.