The following information applies to Krynton Company, which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

What is the reorder point? (Assume a 365 day year.)
A) 1040 units
B) 2614 units
C) 2650 units
D) 2944 units

Question

The following information applies to Krynton Company, which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

What is the reorder point? (Assume a 365 day year.)

What is the reorder point? (Assume a 365 day year.)
A) 1040 units 
B) 2614 units 
C) 2650 units 
D) 2944 units

Quizplus · Accepted Answer

Reorder point = Number of units sold per time period × Purchase-order lead time
Daily demand = 53,000 / (52 × 7) = 145.21
Therefore, reorder point = 145.21 × 18 = 2614

The Following Information Applies to Krynton Company, Which Supplies Microscopes