What is leaky pipes optimal order quantitywhat is the, Operation Management

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What is leaky pipes optimal order quantitywhat is the

Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 30,000 units per year. It costs Leaky Pipe $10 to process an order to replenish stock and $1 per unit per year to carry the item in stock.

Stock is received 4 working days after an order is placed. No backordering is allowed. Assume 300 working days a year.

What is Leaky Pipe's optimal order quantity?

What is the optimal number of orders per year?

What is the optimal interval (in working days) between orders?

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