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You work at SuperBest appliance store. You are aware that the demand for appliance is stable. You further collect the following data for the bestselling
You work at SuperBest appliance store. You are aware that the demand for appliance is stable. You further collect the following data for the bestselling washer: Average annual sales = 3000 units Ordering cost = $300 per order Carrying cost = 20% of the item cost per year Item cost = $400 per unit Lead time = 10 days Working days per year = 250 What is the reorder point ROP? Assume that the demand follows a Normal Distribution with mean of 12 units per day. The standard deviation of the daily demand is 3. The service level is 95%
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