K2.

4. Multi-period uncertain demand ((Q,R)-model) A scientific college has an average demand of 50 packages of copy paper per working day. There are 250 working days per year, and the price of one packet is 80 kr. For ordering, the college reckons a cost of 1000 kr. and they use an internal interest rate of 20%. The lead-time for a delivery is 5 days and the demand in the lead-time follows the normal distribution with a standard deviation of 50 packages. If a stockout occurs, the college reckons a penalty cost of 300 kr. per packet for inconvenience. a) The current ordering policy has been to use the EOQ-formula to decide the order size and place an order when 8 days demand is left on stock. Find the order size and reorder point when using this policy. b) Calculate the optimal combination of order size and reorder point for this situation