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Reorder Point Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the

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Reorder Point Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3 units 2. Select the graph that displays the appropriate reorder point Inventory (units) EOQ-5,000 Inventory (units) EOQ 2,500 ROP 2.500 ROP-2,500 10 15 20 15 10 20 Days Inventory (units) ROP 5.000 Inventory (units) EOQ 5,000 EOQ 2.500 ROP 2,500 15 10 20 0 5 10 1520 Days Correct answer is -select your answer- 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists? units

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