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Inventory policy at SportsWorld.com

SportWorld.com places orders for Wilson golf balls every other week. Weekly demand for these golf balls averages 50 dozen, and the lead time for delivery of the balls is one week. SportWorld.com wishes to have a safety stock of 10 dozen golf balls to allow for variation in weekly demand. If the inventory at the time an order is placed is 15 dozen golf balls, determine how many dozen golf balls the firm should order.

Solution Preview

Weekly demand D = 50 dozens
Lead time L = 1 week
safety stock SS= 10 dozen
Inventory on ...

Solution Summary

The solutions provides steps to arrive at inventory policy in case of periodic review system

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