Jimmy's Egg is a specialty restaurant featuring 47 different kinds of omelettes in three different sizes. They use 60 dozen eggs a day that they order from an egg factory with a lead time of 5 days.
One day they stock their chiller and note that there are only 25 dozen eggs remaining. They have a backorder of 15 cases and an open order of 200 cases.
1. What is their inventory position? (IP)
2. Should they place an order? (Calculate the Reorder point to answer this question. There is no safety stock)
Answers: 1
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