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The Purin Dog Food is a very popular product at Kay Noemi s corner grocery. Demand for this is relatively constant, and the total demand
The Purin Dog Food is a very popular product at Kay Noemis corner grocery. Demand for this is relatively constant, and the total demand for the year is bags. The cost of placing an order is $ while the holding cost is $ per unit per year. The store is open days per year. The reorder lead time for this product is days.
a if Kay places orders per year, what would her ordering and holding costs be
b if Kay wishes to minimize her total inventory cost, how many units should she order each time an order is placed? How much would her ordering and holding costs be
c What is the reorder point?
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