Awhat is office supremes optimal ordering quantity bwhat is


Office Supreme, Inc., a local retailer of office supplies, faces demand for one of its inventory items at a constant rate of 240,000 units per year. It costs Office Supreme $38 to process an order to replenish stock and $2.5 per unit per year to carry the item in stock. Stock is received 5 working days after an order is placed. Assume 250 working days a year. a. What is Office Supreme's optimal ordering quantity? b. What is the reorder point? c. What is the annual number of orders? d. What is the optimal interval (in working days) between orders? e. What are the annual carrying cost, ordering cost and total cost?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Awhat is office supremes optimal ordering quantity bwhat is
Reference No:- TGS0563881

Expected delivery within 24 Hours