Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started