Demand for an item is steady at 20 units a week and the economic order quantity has been calculated at 50 units What is the reorder level when the lead time is (a) 1 week, (b) 2 weeks ...

When the lead time is between nT and n1T an order should be placed whenever s ...

Demand for an item is steady at 20 units a week and the economic order quantity has

Question:

Demand for an item is steady at 20 units a week and the has been calculated at 50 units. What is the reorder level when the lead time is
(a) 1 week,
(b) 2 weeks?

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...