COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCKAn Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year.On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. Thestore wants to calculate the reorder point without a safety stock and then with a one-day safety stock.APPROACH c First compute the daily demand and then apply Equation (12-6) for the ROP.Then compute the ROP with safety stock.
COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCKAn Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year.On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. Thestore wants to calculate the reorder point without a safety stock and then with a one-day safety stock.APPROACH c First compute the daily demand and then apply Equation (12-6) for the ROP.Then compute the ROP with safety stock.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCK
An Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year.
On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. The
store wants to calculate the reorder point without a safety stock and then with a one-day safety stock.
APPROACH c First compute the daily demand and then apply Equation (12-6) for the ROP.
Then compute the ROP with safety stock.
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