Question 1: You are in charge of setting up an inventory control system in a bookstore. The books in question have an ongoing demand pattern, with some random number of books being sold each day. This demand pattern is expected to continue for quite some time. When we need more copies of a particular title, we can order them and they typically arrive after a three to four day lead time.
Describe the type of inventory control system you will put in place for these books. You should explain in details what the relevant issues are, and what trade-offs need to be balanced in determining the ordering parameters.
You are in charge of inventory control for a bookstore, but now the books in question are used for classes at a university. All of the books will be sold during the first week of class. After the first week of class there will be no more need for additional books. The lead time is such that we will not have a chance to order more books once the one-week selling period starts.
Explain how this changes your answer to the previous question.
Below is your study guide. Note that these are talking points and based on the expert's experience:
First, I suggest you look into the historical movement of the books. From these historical data, you can then compute for the economic order quantity and taking into account lead times and the desired safety stock levels ...
The solution assists with setting up an inventory control system in a bookstore.