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Q. At Dot Com, a large retailer of popular books, Demand is constant at 18,700 books per yr. The cost of placing an order to replenish stock is $75 also the annual cost of holding is $6 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Suppose 325 working days a yr.

a) Illustrate what is Dotcom optimal order quantity?

b) Illustrate what is the optimal number of orders per yr

c) Illustrate what is the optimal interval ( in working days) between orders?

d) Illustrate what is the Demand during the lead time?

e) Illustrate what is the reorder point?

f) Illustrate what is the inventory position immediately after an order has been placed?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9311182

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