Question
China Sea Store sells 100,000 tea bags a year. Additional data are presented below: Selling price per bag 2.50 Purchase cost per bag 1.50 Ordering
China Sea Store sells 100,000 tea bags a year. Additional data are presented below:
Selling price per bag 2.50
Purchase cost per bag 1.50
Ordering Cost 5.40 per order
Carrying Cost 20% of unit cost
Number of days the company operate in a year 250
Average lead time on purchases 6 days
What is the reorder point?
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Management A Practical Introduction
Authors: Angelo Kinicki, Brian Williams
9th Edition
1260075117, 978-1260075113
