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Shortly after the inventory is costed-out, a decision is made whether to order more product from the supplying factory. If the day's Ending Inventory falls
Shortly after the inventory is costed-out, a decision is made whether to order more product from the supplying factory. If the day's "Ending Inventory" falls (strictly) below a user-defined "Reorder Point," then an order for some user-defined yet constant "Order Quantity" is sent to the factory. The factory is very responsive, and the ordered quantity arrives just before 6 AM the following day. If an order is placed, a fixed cost is incurred for order processing and transportation. The price of the insulation units depends on the quantity ordered and is
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