An Office Supply Store Open Five Days a Week Must

question 52

Essay

An office supply store open five days a week must determine the best inventory policy for boxes of copier paper.Weekly demand is nearly constant at 250 boxes.When orders are placed,the 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 two 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:

Contextual Validity

The appropriateness of research or assessment methods and conclusions within the specific context they are applied.

Face Validity

The extent to which a test is subjectively viewed as covering the concept it purports to measure, often assessed through its appearance to non-experts.

Predictive Validity

The extent to which a score on a test or measurement accurately predicts future performance on a related task or behavior.

Concurrent Validity

The degree to which the results of a particular test or measurement correspond to those of a previously established measurement for the same construct.