Answer the following questions using the information below:
Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 200 per week, at $35 per lens. Blitz covers all shipping costs. Vision earns 25% on its cash investments. The purchase-order lead time is 2.5 weeks. Vision sells 225 lenses per week. The following data are available:
-What is the reorder point?
A) 500 lenses
B) 562.5 lenses
C) 1050 lenses
D) 1062.5 lenses
Correct Answer:
Verified
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Q25: Under economic-order-quantity decision model,it is assumed that
Q27: The economic order quantity model completely ignores
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Q40: The purchase-order lead time is the _.
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