At Dot Com, a large retailer of popular books, demand is constant at 18,700 books per year. The cost of placing an order to replenish stock is $75, and the annual cost of holding is $6 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year.
a) What is Dotcom optimal order quantity?
b) What is the optimal number of orders per year
c) what is the optimal interval ( in working days) between orders?
d) What is the demand during the lead time?
e) What is the reorder point?
f) What is the inventory position immediately after an order has been placed?