Saché, Inc., expects to sell 980 of its designer suits every week. The store is
ID: 2714390 • Letter: S
Question
Saché, Inc., expects to sell 980 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 780 suits and a safety stock of 140 suits. Once an order is placed, it takes three days for Saché to get the suits in. (Enter your answer as directed, but do not round intermediate calculations.)
Assume that it is Monday morning before the store opens, and a shipment of suits has just arrived. When will Saché place its next order?
Saché, Inc., expects to sell 980 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 780 suits and a safety stock of 140 suits. Once an order is placed, it takes three days for Saché to get the suits in. (Enter your answer as directed, but do not round intermediate calculations.)
Explanation / Answer
Number of order per year = Annual Demand / EOQ = (980 * 52) / 780 = 65.33 = 65 times
Number of Days between order = No. of working days per year / number of orders = 365 / 65 = 5.62 = 6 days
Lead Time = 3 days
Sache will place its next order = 6 - 3 = 3 days = Thursday
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