Question
Shamrocks Home Made Cookies has an annual usage of 4,200 kg of chocolate chips, economic order quantity of 236 kg of chocolate chips, average usage
Shamrocks Home Made Cookies has an annual usage of 4,200 kg of chocolate chips, economic order quantity of 236 kg of chocolate chips, average usage of 21 kg per day, and a lead time of 3 days. Shamrocks only bakes cookies 4 days per week and needs to keep a safety stock of one days worth of chocolate chips. Determine the re-order point for chocolate chips.
| Re-order point | kg. |
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Cost Management Measuring, Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
3rd Canadian Edition
978-1-119-1856, 978-1119185697
