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Inventory models Below are the data for water-testing kits stocked by a field unit of Environmental Protection Agency. Optimal order (Qn) = 6 orders per
Inventory models
- Below are the data for water-testing kits stocked by a field unit of Environmental Protection Agency. Optimal order (Qn) = 6 orders per year.
Average daily use : 6 kits
Average reorder period : 20 kits per day
Cost to store one kit per year : P8
Estimated out of stock cost per kit : P30
| Usage during reorder period 40 | Probability of usage 10 | ||
| 60 | 15 | ||
| 80 | 20 | ||
| 100 | 35 | ||
| 120 | 15 | ||
| 140 | 3 | ||
| 160 | 2 |
What is the reorder point?
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