Problem 10-03 (Algorithmic)
The reorder point r = dm is defined as the
lead-time demand for an item. In cases of long lead times, the
lead-time demand and thus the reorder point may exceed the economic
order quantity Q*. In such cases, the inventory position
will not equal the inventory on hand when an order is placed, and
the reorder point may be expressed in terms of either the inventory
position or the inventory on hand. Consider the economic order...