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:

Mood Disorders

A category of mental health issues characterized by a significant change in a person's mood, such as depression or bipolar disorder.

Inhibited Temperament

A disposition marked by a tendency to avoid or withdraw from unfamiliar people, situations, or environments.

Choleric

One of the four traditional temperaments; characterized by quickness to anger and aggressive or domineering tendencies.

Sanguine

Sanguine describes a personality type that is cheerful, optimistic, and confident.