Question
ABC Company annually buys 600,000 units of Part B. The EOQ is 12,000 units. The ABC Companys average usage equals 2,000 units/day (600,000 units/300 working
ABC Company annually buys 600,000 units of Part B. The EOQ is 12,000 units. The ABC Companys average usage equals 2,000 units/day (600,000 units/300 working days) and the average lead-time for ordering Part A is 6 days.
48. What is the reorder point with no variability in either usage or lead-time?
a. |
11,000 units |
b. |
12,000 units |
c. |
13,000 units |
d. |
14,000 units |
49. What is the level of safety stock if usage could be as high as 2,200 units/day?
a. |
1,200 units |
b. |
1,000 units |
c. |
800 units |
d. |
600 units |
50. What is the level of safety stock if lead-time could be as high as 9 days?
a. |
8,000 units |
b. |
7,000 units |
c. |
6,000 units |
d. |
5,000 units |
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