Question
3. The following information is available for Pennyless Company's Material #123: Annual usage in unit.............................................................................................................10,000 Working days per year ..............................................................................................250 Normal lead time in working
3. The following information is available for Pennyless Company's Material #123:
Annual usage in unit.............................................................................................................10,000
Working days per year ..............................................................................................250
Normal lead time in working days.................................................................................................30
Maximum lead time in working days............................................................................................. 70
Assuming that the units of Material #123 will be required evenly throughout the year, what would be the
order point ?
I've searched how to compute for the order point but I can't seem to understand them. I'm hoping you someone can help me with this problem with a supporting formula please. Thank you!
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