Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue's Home Made Cookies has an annual usage of 6,400 kg of chocolate chips, economic order quantity of 167 kg of chocolate chips, average usage

Blue's Home Made Cookies has an annual usage of 6,400 kg of chocolate chips, economic order quantity of 167 kg of chocolate chips, average usage of 32 kg per day, and a lead time of 3 days. Blue's only bakes cookies 4 days per week and needs to keep a safety stock of one day's worth of chocolate chips. Determine the re-order point for chocolate chips.

what is the Re-order point? (in kg.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

6th Canadian edition

013257084X, 1846589207, 978-0132570848

More Books

Students also viewed these Accounting questions