Business, 25.03.2021 21:10 krisbarnett5353

"Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by determining the optimal number of oak boards to order. The annual demand averages 33,000 boards and the order cost is $28.00 per order. Holding cost is estimated to be 20%. The purchase cost of each board is $25.00. The standard deviation of daily demand is 3 boards. The standard deviation of lead time is 2.0 days. Assume 263 days in the year and an average lead time of 2 days. If a service level of 93% is desired during the reorder interval, what is the reorder point? Remember you cannot order partial units, round to the nearest whole unit in the LAST step"

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