Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Sunrise Company uses 150,000 gallons of acid per month. The cost of carrying the chemical in inventory is RM0.50 per gallon per year, and

image text in transcribed

The Sunrise Company uses 150,000 gallons of acid per month. The cost of carrying the chemical in inventory is RM0.50 per gallon per year, and the cost of ordering the chemical is RM150 per order. The firm uses the chemical at a constant rate throughout the year. It takes 18 days to receive an order once it is placed. What is the inventory reorder point? Select one: A. 105,000 gallons B. 90,000 gallons C. 25,000 gallons D. 7,500 gallons

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions