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A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the...

A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has the following characteristics...Average annual demand = 3,200 units; Replenishment Lead Time = 1.5 week; Holding Costs = 15% per year; Purchase price, delivered = $55 per unit; Procurement ordering costs = $35 per unit. a. Suppose that the lead time stretches to three weeks, so that the ROP > EOQ. What adjustments would you suggest making in the control policy?

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