Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 2 0 , 4 0

Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 20,400 units per year. It costs Leaky Pipe $15 to process an order to replenish stock and $3.00 per unit per year to carry the item in stock. Stock is received 12 working days after an order is placed. No backordering is allowed. Assume 250 working days a year.
Part 2
a. Leaky Pipe's optimal order quantity is enter your response here units. (Enter your response rounded to the nearest whole number.)
Part 3
b. The optimal number of orders per year is enter your response here orders. (Enter your response rounded to the nearest whole number.)
Part 4
c. The optimal interval(in working days) between orders is enter your response here days. (Enter your response rounded to one decimal place.)
Part 5
d. The demand during lead time is enter your response here units. (Enter your response rounded to the nearest whole number.)
Part 6
e. The reorder point is enter your response here units. (Enter your response rounded to the nearest whole number.)
Part 7
f. The inventory position immediately after an order has been placed is enter your response here units. (Enter your response rounded to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

9781292016924

Students also viewed these General Management questions