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Opthea sells optical equipment. Bitron manufactures special glass lenses. Opthea orders 11,400 lenses per year, 220 per week, at $40 per lens. Bitron covers all
Opthea sells optical equipment. Bitron manufactures special glass lenses. Opthea orders 11,400 lenses per year, 220 per week, at $40 per lens. Bitron covers all shipping costs. Opthea earns 22% on its cash investments. The purchase-order lead time is 3.0 weeks. Opthea sells 315 lenses per week. The following data are available:
Relevant ordering costs per purchase order $47.25
Relevant insurance, materials handling, breakage,
and so on, per year $5.50
What is the reorder point?
a. | 1318 lenses | |
b. | 660 lenses | |
c. | 1605 lenses | |
d. | 945 lense |
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