Question

You are in charge of reordering gasoline for your company car fleet. You have decided to use a periodic inventory control system, and calculated your economic order quantity (EOQ) to be 4800 gallons. Your company is open 50 weeks per year and you look back at historic demand and find that you have averaged using 160 gallons per day with a standard deviation of demand of 35 gallons per day. The lead time from when you place an order until when it is delivered is 2 weeks. Assume the company operates 7 days per week. What should be the optimal time between orders (P) based on the economic ord

Answer 1

The answer is "30 days".

Step-by-step explanation:

Please find the complete question in the attached file.

per period demand
`d=160`

per year periods
`o=350`

Annual demand

Order quantity

Orders per year

The time between orders