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A local supermarket sells a popular brand of shampee at a fairly steady rate of 3 8 0 b o t c g Per month.
A local supermarket sells a popular brand of shampee at a fairly steady rate of Per month. The cost of each bottle to the supermarket is cents, and the cost of an order has been estimated at $ Assume that holding costs are based on a pereent annual interest rate. Stockouts of the shampoe are not allowed.
a Determine the optimal lot size the supermarket should order and the time between placements of onders for this product.
b If the lead time is three months, find the reorder point based on the onhand inventory.
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