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Maximart Sales The inventory manager of Maximart Sales wants to establish optimum ordering policy. Weekly demand for a particular item (one of many Maximart handles)

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Maximart Sales The inventory manager of Maximart Sales wants to establish optimum ordering policy. Weekly demand for a particular item (one of many Maximart handles) follows a normal distribution with a mean of 300 units and a standard deviation of 70 units. The supplier sells at the following schedule for volume discounts: Order quantity, units 1-999 LOGO-3,999 4,000 or more Price, Plunit 5,000 4,750 4.500 It costs P6250 to place an order and P30 to hold a unit in inventory for 1 week. The lead time between placing an order and receiving it, inspected and ready for use. varies from one order to the next. Most orders take 2 weeks from the time of ordering until they're received and available for use. However, 30% of the orders take 3 weeks. and 10% take only 1 week. When demand cannot be satised from stock, some customers are willing to back order and wait another week or two for delivery but many others are not. The percentage of customers who are unwilling to wait for delivery varies between 50% and 90%, with any percentage in between equally likely. The company estimates it loses P5250 profit for a lost sale

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