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COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCK An Apple store has a demand (D) for 8,000 iPhones per year. The firm
COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCK 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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