An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 7

Assuming 250 days of operation per year and a lead time of 5 days, what is the reorder point for Westside Auto in Problem 15? Show the general formula for the reorder point for the EOQ model with backorders. In general, is the reorder point when backorder are allowed greater than or less than the reorder point when backorders are not allowed? Explain.