Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUS at a constant rate of 34,000 units per year. It costs Leaky Pipe $35 to process an order to replenish stock and $5.00 per unit per year to carry the item in stock. Stock is received 6 working days after an order is placed. No backordering is allowed. Assume 350 working days a year. a. Leaky Pipe's optimal order quantity isOunits. (Enter your response rounded to the nearest whole number.) b. The optimal number of orders per year is orders. (Enter your response rounded to the nearest whole number.) c. The optimal interval (in working days) between orders is days. (Enter your response rounded to one decimal place) d. The demand during lead time is units. (Enter your response rounded to the nearest whole number.) e. The reorder point is units. (Enter your response rounded to the nearest whole number.) f. The inventory position immediately after an order has been placed is units. (Enter your response rounded to the nearest whole ber.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUS at a constant rate of 34,000 units per year. It costs Leaky Pipe $35 to process an
order to replenish stock and $5.00 per unit per year to carry the item in stock, Stock is received 6 working days after an order is placed. No backordering is allowed.
Assume 350 working days a year.
a. Leaky Pipe's optimal order quantity is units. (Enter your response rounded to the nearest whole number.)
b. The optimal number of orders per year is orders. (Enter your response rounded to the nearęst whole number.)
luti
c. The optimal interval (in working days) between orders is days. (Enter your response rounded to one decimal place.)
d. The demand during lead time is units. (Enter your response rounded to the nearest whole number.)
e. The reorder point is units. (Enter your response rounded to the nearest whole number.)
My
f. The inventory position immediately after an order has been placed is units. (Enter your response rounded to the nearest whole number.)
insent
delete
backspace
Transcribed Image Text:Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUS at a constant rate of 34,000 units per year. It costs Leaky Pipe $35 to process an order to replenish stock and $5.00 per unit per year to carry the item in stock, Stock is received 6 working days after an order is placed. No backordering is allowed. Assume 350 working days a year. a. Leaky Pipe's optimal order quantity is units. (Enter your response rounded to the nearest whole number.) b. The optimal number of orders per year is orders. (Enter your response rounded to the nearęst whole number.) luti c. The optimal interval (in working days) between orders is days. (Enter your response rounded to one decimal place.) d. The demand during lead time is units. (Enter your response rounded to the nearest whole number.) e. The reorder point is units. (Enter your response rounded to the nearest whole number.) My f. The inventory position immediately after an order has been placed is units. (Enter your response rounded to the nearest whole number.) insent delete backspace
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