At sejahtera.com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10, and the annual cost of holding is $4 per book. Stock is received five working days after an order has been placed. The backordering is not allowed. Assume 300 working days a year. a. calculate sejahtera.com’s optimal order quantity. b. calculate the optimal number of orders per year c. Calculate the optimal interval (in working days) between orders.
At sejahtera.com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10, and the annual cost of holding is $4 per book. Stock is received five working days after an order has been placed. The backordering is not allowed. Assume 300 working days a year.
a. calculate sejahtera.com’s optimal order quantity.
b. calculate the optimal number of orders per year
c. Calculate the optimal interval (in working days) between orders.
d. Determine the demand during the lead time.
e. Determine the reorder point.
f. Determine the inventory position immediately after an order has been placed.
g. Draw the model to represent the case.
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