Question
Read the following scenario: Black Diamond Manufacturing Company operated their inventory replenishment process utilizing the economic order quantity and re-order point methodology. The supply chain
Read the following scenario: Black Diamond Manufacturing Company operated their inventory replenishment process utilizing the economic order quantity and re-order point methodology. The supply chain team has provided the following key data to calculate the newest EOQ order quantity and re-order point (ROP): Item Number 621249 - PSV Valve: Annual demand in units = 10,000 Estimated internal ordering cost per order = $75.00 Cost per unit = $1,500 Estimated internal inventory carrying cost = 15% Suppler lead time (T) = 10 days Safety stock = 200 units
2. For a perpetual review system, calculate the re-order point where the average performance cycle length (T) equals 20 days.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started