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Required: 1. Calculate the reorder point, using (Reorder point = Rate of usage x Lead time). units 2. Select the graph that displays the appropriate
Required: 1. Calculate the reorder point, using (Reorder point = Rate of usage x Lead time). units 2. Select the graph that displays the appropriate reorder point. a. Inventory (units) EOQ 2,500 b. Inventory (units) EOQ - 5,000 ROP -2,500 ROP 2,500 0 5 15 20 0 5 10 15 20 10 Days Days C. Inventory (units) ROP 5,000 d. Inventory (units) EOQ 5.000 EOQ 2.500 ROP 2,500 0 5 15 20 0 5 10 15 20 10 Days Days Correct answer is 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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