Mr. Dave Jones manages the warehouse in inventory for Athleticks, a distributor or sports watches. From his experience, Mr. Jones knows that the PR-5 jogging watch has an average daily demand of 100 units and a performance cycle of 8 days. Mr.Jonesrequires no buffer stock at this time.
a. Assume Mr. Jones perpetually reviews inventory levels. Find the reorder point for the PR-5 jogging watch.
b. Find the average inventory level of the PR-5 watch.
c. How might the reorder point change if Mr. Jones reviews inventory once each week? Find the reorder point under these conditions.