Ibrahim Youssef manages a home appliances store. One product in the store is the washing machine type X. Ibrahim predicted that 1600 washing machine will be sold this
year at a constant rate throughout the year. There are 250 working days per year and
the lead-time is 5 days. The cost of placing an order is $25, while the holding cost is $50
per item per ybar.
a.
How many units should Ibrahim order each time?
(2 pts)
b. The total annual inventory cost?
(2 pts)
The period between two consecutive orders?
(2 pts)
d. Find the reordering point (ROP)?
(1 pt)