Daisy's dog supply sells popular dog vitamins which have an expected demand of 15,000 jars per year (or 60 bottles per day with 250 sales days per year).Lead time from the distributor is three days.It has been determined that demand in any 3-day period exceeds 200 bottles only once out of every 100 three-day periods.This outage level (of 1 in 100 LT periods) is considered acceptable by Daisy as well as production and marketing VPs.The economic order quantity has been derived as 2,820 jars.Set up the perpetual inventory system.

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The Answer of Daisy's dog supply sells popular dog vitamins which have an expected demand of 15,000 jars per year (or 60 bottles per day with 250 sales days per year).Lead time from the distributor is three days.It has been determined that demand in any 3-day period exceeds 200 bottles only once out of every 100 three-day periods.This outage level (of 1 in 100 LT periods) is considered acceptable by Daisy as well as production and marketing VPs.The economic order quantity has been derived as 2,820 jars.Set up the perpetual inventory system.

Daisy's Dog Supply Sells Popular Dog Vitamins Which Have an Expected