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Business, 05.05.2020 23:45 tj88345

Haworth is a manufacturer of office furniture. Production of their office desk line requires a metal bracket, which is purchased from a third party supplier. Haworth produces desks at a constant rate. This will require 15000 brackets annually. Ordering costs are $50 per order. Holding costs are 35% of the value of the inventory. Haworth has 300 working days per year and a lead-time of 4 days. The standard deviation for daily demand is 12. The following inventory policy questions: A) What is the reorder point if Haworth wants a 98% service level?The supplier has informed Haworth that it can offer the following quantity discounts. Quantity Price 1-4999 $1.50 5000-7999 $1.30 8000-10999 $1.22 11000 and above $1.20 B) Based on this information what quantity should Haworth choose when making orders?

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