Question
Reorder Point Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap
Reorder Point Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap is as follows:
Economic order quantity | 6,300 units |
Average daily usage | 315 unit |
Maximum daily usage | 375 units |
Lead time | 4 days |
Required:
What is the reorder point assuming no safety stock is carried?
What is the reorder point assuming that safety stock is carried?
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Cornerstones of Cost Management
Authors: Don R. Hansen, Maryanne M. Mowen
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