The following information applies to Krynton Company,which supplies microscopes to laboratories throughout the country.Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

What is the reorder point? (Assume a 365 day year. )
A)1040 units
B)2614 units
C)2650 units
D)2944 units

Question

The following information applies to Krynton Company,which supplies microscopes to laboratories throughout the country.Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

What is the reorder point? (Assume a 365 day year. )

What is the reorder point? (Assume a 365 day year. )
A)1040 units 
B)2614 units 
C)2650 units 
D)2944 units

Quizplus · Accepted Answer

Reorder point = Number of units sold per time period × Purchase-order lead time
Daily demand = 53,000 / (52 × 7)= 145.21
Therefore,reorder point = 145.21 × 18 = 2614

The Following Information Applies to Krynton Company,which Supplies Microscopes to Laboratories