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## Q. 12.EX.4

COMPUTING NUMBER OF ORDERS AND TIME BETWEEN ORDERS AT SHARP, INC.. Sharp, Inc. (in Example 3) has a 250-day working year and wants to find the number of orders (N) and the expected time between orders (T).
APPROACH $\blacktriangleright$ Using Equations (12-2) and (12-3), Sharp enters the data given in Example 3.

Expected number of orders = N = $\frac{Demand}{Order quantity} = \frac{D}{Q^*}$                     (12-2)

Expected time between orders = T = $\frac{Number of working days per year}{N}$                        (12-3)

## Verified Solution

SOLUTION $\blacktriangleright$
$N = \frac{Demand}{Order quantity} = \frac{1,000}{200} = 5$ orders per year

$T = \frac{Number of working days per year}{Expected number of orders} = \frac{250 working days per year}{5 orders} = 50$ days between orders

INSIGHT $\blacktriangleright$ The company now knows not only how many needles to order per order but that the time between orders is 50 days and that there are five orders per year.

LEARNING EXERCISE $\blacktriangleright$ If D = 1,200 units instead of 1,000, find N and T.
[Answer: N ≅ 5.48, T = 45.62.]

RELATED PROBLEMS $\blacktriangleright$ 12.14, 12.15, 12.17 (12.35c,d are available in MyOMLab)