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LESSON #10: INVENTORY MANAGEMENT HOMEWORK REORDER POINT ] ABC Company computed its EOQ equal to 500 units/purchase order. The average lead time is 5 days
LESSON #10: INVENTORY MANAGEMENT HOMEWORK REORDER POINT ]
ABC Company computed its EOQ equal to 500 units/purchase order. The average lead time is 5 days and the average usage is 10 units/day.
REQUIRED:
1. What is the reorder point with no variability in either lead time or usage?
2. What is the reorder point if the lead time can be as high as 8 days?
3. What is the reorder point if the usage can be as high as13 units/day?
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