Explain the reasoning behind the reorder point formula: Reorder point Lead time Average daily sales.

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Explain the reasoning behind the reorder point formula: Reorder point × Lead time × Average daily sales. How does safety stock fit into the reorder point concept?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 28, 2011 03:52 AM

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Explain the reasoning behind the reorder point formula: Reorder point Lead time Average daily sales.

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If it takes eight days for inventory to arrive and you sell 10 units a day then when i...View the full answer

Accounting concepts and applications

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