Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The VP for Fite's Footballs has asked you to perform an audit of inventory levels for a different region. The inventory manager was recently terminated

The VP for Fite's Footballs has asked you to perform an audit of inventory levels for a different region. The inventory manager was recently terminated and you need to determine the appropriate safety stock for each item. Management has set the service level at 85%. Given the data below, what would the REORDER POINT be for the following item?

Price $100
Annual Demand 208,000 units
Cost per Order $200
Cost to hold the item per year 25%
Economic order quantity 1825
Lead Time 3 weeks
Standard Deviation of Forecasted Demand During Lead Time 300

choose the correct answer:

ROP = 9208

ROP = 6208

ROP = 8312

ROP = 12312

ROP = 9168

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

The UCAS Guide To Getting Into Economics Finance And Accountancy At University

Authors: Ucas, Targetjobs.Co.UK

1st Edition

9781908077172

More Books

Students also viewed these Accounting questions

Question

1. Define and explain culture and its impact on your communication

Answered: 1 week ago