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II. Sweet Scent Company manufactures scented wax pellets. The company buys wax in 100-pound containers that cost $15 each. They use 20,000 containers per year,
II. Sweet Scent Company manufactures scented wax pellets. The company buys wax in 100-pound containers that cost $15 each. They use 20,000 containers per year, and usage occurs evenly throughout the year. The average cost to carry a 100-pound container in inventory per year is $2, and the cost to place an order is $10. The company works 250 days per year. The lead time is four working days and the average rate of usage is 80 containers per day. c. Assume they require a safety stock of 20 containers. What is the new reorder point
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