Intermediate II

Part 3: Piccirilli Manufacturing Company uses approximately 5,000 units of the raw material evenly throughout the month. The company requires three weeks to process and receive an order of materials. The Company wants to maintain a minimum inventory level of 500 units at all times. icate Piccirilli Manufacturing Company incurs carrying costs of $5 per month for one unit of its major raw material and incurs costs of $2,880 for each order it places. Your Answer a. Piccirilli Manufacturing Company should reorder units of raw material when its inventory reaches: (2 points) Supporting Calculation Required: 11 p + Your Answer b. The optimum number of units that Piccirilli Manufacturing Company should order each time is: (2 points) Supporting Calculation Required: ers