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Zoe has decided to place an order for gadgets every 2 weeks, ordering exactly the quantity needed to satisfy demand between two orders and timing
Zoe has decided to place an order for gadgets every 2 weeks, ordering exactly the quantity needed to satisfy demand between two orders and timing the orders such that they arrive exactly as the stock runs out. How much should she order every month (Q)? What is her total average weekly cost (setup inventory holding purchasing) assuming that she satisfies all the customers demand from stock? What should be her reorder point if the orders are placed as described here? Note: only include the costs which are relevant to the EOQ model
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