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ADR purchases wood screws from a local representative. The local rep visits the shop once every 3 weeks (21 days). When he arrives he counts the number of boxes of wood screws in inventory and works with the inventory manager to place an order that day. The screws are shipped from a local distribution center. The average daily demand, lead time, safety stock, and on hand inventory are provided below. How many boxes of screws should ADR order

Sagot :

batolisis

Answer: Attached below is the missing data related to your question

answer :  66 boxes

Explanation:

Determine the number of boxes of screws that ADR should order

we can determine the number of boxes by applying the relationship below

Q ( quantity of boxes ) = d ( T + L ) + SS - I   ------ ( 1 )

where: d = 2 ( average daily demand )

           T = 21 ( frequency of visit by local rep )

           L = 4 ( lead time )

           SS = 20  , I = 4

back to equation 1

Q = 2 ( 21 + 4 ) + 20 - 4

   = 2 ( 25 ) + 16

   = 50 + 16 =  66 boxes

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