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B)4 days C) 12 days D) 7 days 43, 44, 45) (3 points) An inventory item of Xiong Corp. has an average daily 25 units
B)4 days C) 12 days D) 7 days 43, 44, 45) (3 points) An inventory item of Xiong Corp. has an average daily 25 units with a maximum daily demand of 30 units. The economic order quantity is 500 daily demand of units. Without safety stocks, the reorder point is 125 units. Safety stocks are set at 235 units. Required: a. Determine the reorder point with safety stocks b. Determine the maximum inventory level. c. Determine the average lead time. Answer a) b) c) 46) Costs of abnormal spoilage are usually accounted for as A) a deduction from the cost of goods sold B) a component of the costs of good units manufactured )a separate line item in an income statement D) an asset on a balance sheet
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