A firm needs 7 days for an order to be processed and received, sells 8 items per day, and keeps a safety stock of 10 items. Its reorder point should be 87.

Name: A firm needs 7 days for an order to be processed and received, sells 8 items per day, and keeps a safety stock of 10 items. Its reorder point should be 87.
Brand: Quizplus
Rating: 5.0 (33 reviews)

Question

Quizplus · Accepted Answer

The reorder point formula is: (Lead Time * Daily Sales) + Safety Stock. Therefore, the correct calculation is (7 days * 8 items/day) + 10 items = 66 items.

A Firm Needs 7 Days for an Order to Be