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V = $50.00 per unit W = 15% S = $7.50 per unit per year A = $50.00 per order R = 1,200 units Now
V = $50.00 per unit W = 15% S = $7.50 per unit per year A = $50.00 per order R = 1,200 units
Now that you have the recommended quantity for the initial inventory level, calculate the point of reordering for Metals LCC.
Assume that order transmittal takes two days, order processing and preparation take two days, and order delivery takes five days. This results in a replenishment or lead time of nine days. Given that demand is 15 units per day.
Question: What is the reordering point for Metals LCC? show the calculations.
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