Leaky pipe a local retailer of plumbing supplies faces, Operation Management

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Leaky pipe a local retailer of plumbing supplies faces

Leaky? Pipe, a local retailer of plumbing? supplies, faces demand for one of its SKUs at a constant rate of 20,400 units per year. It costs Leaky Pipe ?$8 to process an order to replenish stock and $5.00 per unit per year to carry the item in stock. Stock is received 2 working days after an order is placed. No backordering is allowed. Assume 250 working days a year.

a. Leaky? Pipe's optimal order quantity is how many units. ?(Enter your response rounded to the nearest whole? number.)

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