Question
Consider a retail operation with an estimated annual demand of 4771 units , and an average daily demand of 23.855 units per day, assuming 200
Consider a retail operation with an estimated annual demand of 4771 units , and an average daily demand of 23.855 units per day, assuming 200 working days a year. Each unit of inventory costs $1.06 to keep in stock. The supplier has offered to charge $19.26 ordering cost, but will require a 10 day lead time.What is the reorder point? Please insert a number below with no decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The reorder point can be calculated using the formula Reorder Point Average Dai...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
