Smart Manufacturing uses an average of 20,000 components per day, although usage can run as high as 22,500 components per day. Lead time required for placing an order is four days.
Required:
a.
Determine Smart's reorder point without safety stock.
b.
Determine Smart's safety stock.
c.
Determine Smart's reorder point with safety stock.

Question

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The Answer of Smart Manufacturing uses an average of 20,000 components per day, although usage can run as high as 22,500 components per day. Lead time required for placing an order is four days.
Required:
a.
Determine Smart's reorder point without safety stock.
b.
Determine Smart's safety stock.
c.
Determine Smart's reorder point with safety stock.

Smart Manufacturing Uses an Average of 20,000 Components Per Day