Jills Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of
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Jill’s Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require 2 months’ lead time. Jill wants to maintain a safety stock of sufficient material to meet 1 month’s demand. What is Jill’s reorder point?
a. 3,000
b. 6,000
c. 9,000
d. 12,000
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Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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