GROCERY STORE PROBLEM: A local retailer of pet food faces de…
GROCERY STORE PROBLEM: A local retailer of pet food faces demand for one of its items at a constant rate of 25,000 bags per year. It costs them $10 to process an order and $2 per bag per year to carry the item in stock. The stock is received three working days after an order is placed. Assume 300 working days in a year and no backordering. What is the demand during lead time assuming that there is no variability?