Answer the following questions using the information below:
North Ryde Optics sells optical equipment.Vision Lenses manufactures special glass lenses.North Ryde Optics orders 10 400 lenses per year,200 per week at $20 per lens.Vision Lenses covers all shipping costs.North Ryde Optics earns 30% on its cash investments.The purchase-order lead time is 2.5 weeks.North Ryde Optics sells 250 lenses per week.The following data are available:
Relevant ordering costs per purchase order $\quad\quad\quad \$ 21.25 $
Relevant insurance, materials handling, breakage,
and so on, per year$\quad\quad\quad\quad\$2.50$

-What is the reorder point?
A)415.5 lenses
B)625 lenses
C)397.5 lenses
D)441 lenses

Question

Answer the following questions using the information below:
North Ryde Optics sells optical equipment.Vision Lenses manufactures special glass lenses.North Ryde Optics orders 10 400 lenses per year,200 per week at $20 per lens.Vision Lenses covers all shipping costs.North Ryde Optics earns 30% on its cash investments.The purchase-order lead time is 2.5 weeks.North Ryde Optics sells 250 lenses per week.The following data are available:
 Relevant ordering costs per purchase order $\quad\quad\quad \$ 21.25 $
 Relevant insurance, materials handling, breakage, 
and so on, per year$\quad\quad\quad\quad\$2.50$

-What is the reorder point?
A)415.5 lenses
B)625 lenses
C)397.5 lenses
D)441 lenses

Quizplus · Accepted Answer

The reorder point is calculated by multiplying the weekly demand (250 lenses) by the lead time in weeks (2.5 weeks), which equals 625 lenses.

Answer the Following Questions Using the Information Below: North Ryde $21.25\quad\quad\quad \$ 21.25 $21.25

Answer the Following Questions Using the Information Below:
North Ryde $\quad\quad\quad \$ 21.25$