(Solution) - Bristol Bikes Inc wants to develop an order quantity and reorder point -(2025 Original AI-Free Solution)

Paper Details

Bristol Bikes, Inc. wants to develop an order-quantity and reorder-point policy that would minimize the total costs associated with its inventory of exercise bikes. The relative frequency distribution for retail demand on a weekly basis follows:

The relative frequency distribution for lead time follows:
The inventory-holding costs are $1 per unit per week, the ordering cost is $20 per order, the shortage cost is $25 per unit, and the beginning inventory is 7 units. Using an order quantity of 12 and a reorder point of 5, simulate 10 weeks of operation of this inventory system?