Chelsea Company has determined the following costs are associated with one of its products.$\begin{array}{ll}
\text { Lead time (weeks) } & 4 \
\text { Average weekly usage (units) } & 50 \
\text { Maximum weekly us age (units) } & 65
\end{array}$
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The reorder point is

Question

Quizplus · Accepted Answer

The reorder point is calculated as the maximum weekly usage multiplied by the lead time: 65 units/week * 4 weeks = 260 units.

Chelsea Company Has Determined the Following Costs Are Associated with One