An Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day

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An Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year.

On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. The store wants to calculate the reorder point without a safety stock and then with a one-day safety stock.

APPROACH c First compute the daily demand and then apply Equation (12-6) for the ROP.

Then compute the ROP with safety stock.

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