Ch12_INVENTORYReorder_Point - Chapter 12 Inventory Management Page 571 Reorder Point(ROP Under Certainty ROP = d LT where d = Demand rate(units per

Ch12_INVENTORYReorder_Point - Chapter 12 Inventory...

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Page 571 Reorder Point (ROP): Under Certainty ) as units time same (in time Lead LT per week) day, per period, per (units rate Demand where LT ROP d d d = = × = Chapter 12 Inventory Management Reorder Point=When the quantity on hand of an item drops to this amount, the item is reordered.
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Tingly takes a Two-a-Day vitamins, which are delivered to his home by a routeman seven days after an order is called in. Annual usage is 730 tablets, ordering cost per order is $1, and inventory carrying cost is $2 per tablet per year. (a) What is the fixed order quantity (EOQ)? (b) At what point should Tingly reorder? )
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