A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.
-If the daily demand is 67 and the lead time in days is 2, what is the reorder point?

Question

Quizplus · Accepted Answer

The Answer of A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.
-If the daily demand is 67 and the lead time in days is 2, what is the reorder point?

A Company Distributes Repair Parts for High-End Appliances