Naomi Corporation is open all year, and has an annual demand of 20,000 units for its products. Its carrying cost per unit is $0.75, and its order costs are $120 per order. Additionally, the company wants to have 3 days' worth of sales in its inventory before it reorders. Given this information, calculate the company's reorder point.
A) 564 units
B) 464 units
C) 364 units
D) 264 units
E) 164 units

Question

Quizplus · Accepted Answer

The Answer of Naomi Corporation is open all year, and has an annual demand of 20,000 units for its products. Its carrying cost per unit is $0.75, and its order costs are $120 per order. Additionally, the company wants to have 3 days' worth of sales in its inventory before it reorders. Given this information, calculate the company's reorder point.
A) 564 units
B) 464 units
C) 364 units
D) 264 units
E) 164 units

Naomi Corporation Is Open All Year, and Has an Annual