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Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 17,000 units per year. It
Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 17,000 units per year. It costs Leaky Pipe $35 to process an order to replenish stock and $2.00 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. a. Leaky Pipe's optimal order quantity is 771 units. (Enter your response rounded to the nearest whole number.) b. The optimal number of orders per year is 22 orders. (Enter your response rounded to the nearest whole number.) c. The optimal interval (in working days) between orders is 11.4 days. (Enter your response rounded to one decimal place.) d. The demand during lead time is 816 units. (Enter your response rounded to the nearest whole number.) e. The reorder point is 816 units. (Enter your response rounded to the nearest whole number.) units. (Enter your f. The inventory position immediately after an order has been placed is response rounded to the nearest whole number.)
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