An inventory item of Nullabor Manufacturing has an average daily demand of 20 units with a maximum daily demand of 24 units.The economic order quantity (EOQ)is 200 units.Without safety stocks,the reorder point is 50 units.Safety stocks are set at 94 units.
Required:
a.Determine the reorder point with safety stocks.
b.Determine the maximum inventory level.
c.Determine the average lead time.
d.Determine the maximum lead time.
_____________________________________________________________________________________________
_____________________________________________________________________________________________
Correct Answer:
Verified
\[\begin{array} { | l | l | }
\hlin ...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q47: Decreases in the ordering cost per purchase
Q48: Answer the following questions using the
Q49: The only product of a company has
Q50: Cool Enterprises has one particular product that
Q51: Answer the following questions using the
Q53: The optimal safety stock level is the
Q54: Retailers often hold a fixed level of
Q55: Answer the following questions using the
Q56: To determine the Economic Order Quantity,the relevant
Q57: Bendigo Deli sells 25 hams per week.Purchase-order
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents