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An Office Manager uses a Periodic Review Inventory System: they check the inventory in the Office Supply Closet once every 10 days, placing an order with their supplier depending on the inventory level in the closet. Once the order is placed, it takes 3 days to receive the order. The average demand for post it notes is 30 per day. This week, the manager has counted 140 post it notes in the closet. What is the Minimum Restocking Level (restocking policy) needed to cover expected demand over time without stocking out

Respuesta :

Answer:

390 days

Explanation:

The computation of the Minimum Restocking Level  is shown below:

= Average daily demand × reorder period + Average daily demand × lead time

= 30 days × 10 days + 30 days × 3 days

= 300 days + 90 days

= 390 days

We simply added the reorder period based on average daily demand and lead time based on average daily demand so that the minimum restocking level could come