question archive A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region
A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region
Subject:Operations ManagementPrice:2.86 Bought3
A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 45 weeks per year. Only when it is open for business can orders be received. Management wants to re-evaluate its current inventory policy, which calls for an EOQ of 433 counter-top mixers. The following data are estimated for the mixer:
- Average daily demand = 114 mixers
- Standard deviation of daily demand ( = 30 mixers
- Lead time (L) = 3 days
- The distributor uses a Periodic review (P) system
Calculate the P (in workdays, rounded to the nearest one decimal) that gives approximately the same number of orders per year as the EOQ. (Do not include units in the answer)
