Question
The average inventory of the company was 4,000 units. The company's current safety stock level is 2,000 units. The purchase cost of the inventory is
The average inventory of the company was 4,000 units. The company's current safety stock level is 2,000 units. The purchase cost of the inventory is P50 per unit and the carrying cost is 20% of the inventory cost. The ordering cost per unit is P20.
What is the reordering point of the company?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
The reorder point ROP for the company can be calculated using the following formula ROP Average Dail...
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Step: 2
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Foundations Of Finance
Authors: Arthur Keown, John Martin, J. Petty
10th Global Edition
1292318732, 978-1292318738
