Practical Management Science, Loose-leaf Version
Practical Management Science, Loose-leaf Version
5th Edition
ISBN: 9781305631540
Author: WINSTON, Wayne L.; Albright, S. Christian
Publisher: Cengage Learning
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Chapter 12, Problem 27P
Summary Introduction

To identify: The reorder point at which the bakery must place the orders.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

Expert Solution & Answer
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Explanation of Solution

Model:

Practical Management Science, Loose-leaf Version, Chapter 12, Problem 27P , additional homework tip  1

Formula:

Practical Management Science, Loose-leaf Version, Chapter 12, Problem 27P , additional homework tip  2

Data table to calculate the reorder point for different lead times:

Cells A15 to B18 is selected and the input is given as shown below:

Practical Management Science, Loose-leaf Version, Chapter 12, Problem 27P , additional homework tip  3

Output:

Practical Management Science, Loose-leaf Version, Chapter 12, Problem 27P , additional homework tip  4

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