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A company manufactures candles. The company buys wax in 45-Kilogram containers that cost $17 each. The company uses 7,500 containers per year (demand), and usage
A company manufactures candles. The company buys wax in 45-Kilogram containers that cost $17 each. The company uses 7,500 containers per year (demand), and usage occurs evenly throughout the year. The average cost to carry a 45-Kilogram container in inventory per year is $3, and the cost to place an order is $9. The company works 250 days per year.
The lead time is 4 working days. What is the reorder point?
100 containers
130 containers
120 containers
110 containers
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