Question
Inventory Management Problem 2 The following information is available for Edgar Corporation's Material D Annual Usage12,600 units Working days per year360 days Normal Lead Time20
Inventory Management
Problem 2
The following information is available for Edgar Corporation's Material D
Annual Usage12,600 units
Working days per year360 days
Normal Lead Time20 days
The units of Material D are required evenly throughout the year.
What is the re-order point?
a.35 unitsb. 20dayc. 700 unitsd. 630 units
Assuming that occasionally, the Company experiences delay in the delivery of Material D, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain and what is the reorder point?
Safety StockRe-order Point
a.3501,050
b.350700
c.01,050
d.1,050700
Provide a solution every problem
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Financial & Managerial Accounting
Authors: Carl Warren
12th Edition
1285534646, 978-1133952428
