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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
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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