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A woodshop orders redwood slabs from a lumber yard. It costs $ 5 0 0 to place an order ( irrespective of the number of
A woodshop orders redwood slabs from a lumber yard. It costs $ to place an order irrespective of the number of slabs ordered The woodshop needs redwood slabs per month to satisfy their clients' needs. The woodshop buys slabs from the lumber yard for $unit and annual holding costs are of the cost of a slab. The woodshop does not "believe" in carrying safety stock. The woodshop's standard deviation of monthly demand is The lumber yard's delivery lead time is months. What should the woodshop's reorder point be with their existing safety stock policy
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