- B The New Office Supply Discounter Paper Clips Etc Pce Sells A Certain Type Of Ergonomically Correct Office Chai 1 (50.74 KiB) Viewed 41 times
(b) The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chai
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(b) The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chai
(b) The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chair which costs $300. The annual holding cost rate is 40%, annual demand is 900, and the order cost is $20 per order. The lead time is 4 days. Because demand is variable (standard deviation of daily demand is 2.4 chairs), PCE has decided to establish a customer service level of 90%. The store is open 300 days per year. (i) What is the optimal order quantity? (ii) What is the safety stock? (iii) What is the reorder point? [10 marks]