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Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory
Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information for questions 11 and 12. Annual demand 3,500 mufflers Ordering cost $50 per order Standard deviation of daily demand 6 mufflers per working day Service probability 90% Item cost $30 per muffler Lead time 2 working days Annual holding cost 25% of item value Working days 300 per year O 9. What is the best order size? 10. What is the optimal reorder point
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