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A warehouse supplies a single retailer with a product. The warehouse's purchasing lead time is 3 weeks and the lead time for the retailer

 
A warehouse supplies a single retailer with a product. The warehouse's purchasing lead time is 3 weeks and

A warehouse supplies a single retailer with a product. The warehouse's purchasing lead time is 3 weeks and the lead time for the retailer (from the warehouse) is 1 week. Assume that forecast errors are normally distributed with the for 1 week being 70 units, and that o = to. The annual demand rate is 12,000 units, and the following data have been gathered: Vw = $32/unit, VR = $38/unit, r = 0.22 $/$/year, n = 2, or the warehouse orders two batches of the retailer's order quantity at one time. The retailer's order quantity is QR = 500 units. Finally, suppose that the fractional charge per unit short, B, is set at 0.65. Find the reorder point for both locations.

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