- The Super Discount store (open 24 hours a day, every day) sells 8 packs of paper towels, at the rate of approximately 420 packs per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $.50. The cost to place an order for more is $20 and it takes four days for an order to arrive.
- Find the optimal order quantity
- What is the reorder point?
- How often should an order be placed?
Categories: