Question
F Co. makes available the following information relative to its Material G-224: Annual demand - 30,000 units Working days in a year - 300 days
F Co. makes available the following information relative to its Material G-224:
Annual demand - 30,000 units
Working days in a year - 300 days
Normal lead time - 12 days
Maximum lead time - 19 days
Maximum lead time usage - 125 units
Economic order size - 6,000 units
Required: Calculate the following:
a. Lead time quantity
b. Safety stock quantity
c. Reorder point
d. Average inventory
e. Maximum inventory
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The Vendor Management Office
Authors: Stephen Guth
1st Edition
1435703839, 978-1435703834
