A nearby restaurant using the perpetual method to maintain beverage inventory. Given the following data for Fidelska vodka, determine reorder quantity.
Par stock: 126
Days required for delivery: 5
Desired safety factor: 50.0%
Daily usage: 4
Reorder point:42

Question

Quizplus · Accepted Answer

The reorder quantity can be calculated by first determining the reorder point and then adding the desired safety stock. Given the reorder point is 42 (which is calculated based on daily usage and delivery lead time), and the desired safety factor is 50%, we apply this to the par stock level to determine the safety stock. The safety stock is 50% of 126 (par stock), which is 63. Therefore, the reorder quantity is the sum of the reorder point and the safety stock: 42 (reorder point) + 63 (safety stock) = 105. Since the options are whole numbers and option C is the closest, it's the correct answer.

A Nearby Restaurant Using the Perpetual Method to Maintain Beverage