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A company sells office desks. It is estimated that the annual demand is 1000 and the standard deviation is 50 tables. It is known that the ordering cost is 100 TL and the delivery time is 2 weeks.

A company sells office desks. It is estimated that the annual demand is 1000 and the standard deviation is 50 tables. It is known that the ordering cost is 100 TL and the delivery time is 2 weeks. They accepted the cost of selling none as 50 TL. Tables are supplied from a manufacturer for 50 TL and sold for 100 TL. Annual holding cost is 10% in terms of order cost.
a) Find the reorder point and safety stock, assuming that all delayed orders have been delivered.
b) Find the reorder point and safety stock by accepting delayed orders as lost order (not delivered later).

Apr 16 2021 View more View Less

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