The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units? Round - up to the nearest integer ?? a. 633 b. 1132 C. 1450 d. 860 e. 895 f. None is correct

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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3. A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units? Round - up to the nearest integer ?? a. 633 b. 1132 C. 1450 d. 860 e. 895 f. None is correct
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