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Tennis Warehouse has become a landmark establishment providing its customers with all the brands for tennis lovers in every possible desire (from rackets, balls,
Tennis Warehouse has become a landmark establishment providing its customers with all the brands for tennis lovers in every possible desire (from rackets, balls, apparel, shoes, bags, to all possible accessories) The on-line store has an average monthly demand for 1400 cases of 12 cans of Wilson balls. Replenishment orders of 2400 cases require a lead-time of 1 week. Holding costs are $18.00 per case per year, and the lost sales costs are $12 per case. If the weekly demand for cases is as given in the table below, what should be the reorder point? O 200 225 O 250 O 275 O 300 Demand M 150 175 200 225 250 275 300 325 350 Demand Probability P(M) 0.01 0.04 0.16 0.20 0.30 0.12 0.09 0.06 0.02 Probability of Demand > M
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