A local distributor operates an inventory system where the o…
Questions
A lоcаl distributоr оperаtes аn inventory system where the optimal order quantity Q* is strictly maintained at 1,000 units. The supplier's lead time is 1.5 years. The inventory manager observes that because the lead time is so long, there are always exactly 2 full orders in transit at any given time, plus a fractional remainder. If the reorder point (R) is set at 400 units, calculate the exact annual demand rate (