• 12.13 Atech Service sells professional cleaning machines and scouring agents. They deliver the scouring agents to customers on a fixed weekly schedule.

The annual demand is 1,500 bottles, each with a value of $10.

The fixed cost for each order placed at the supplier’s is $100. The lead time is 2 weeks.

a) Assuming that the holding cost is $10/year and bottle, calculate the economical order size?

b) Calculate the reorder point.