DMO S.A. is a company that trades a particular automotive component. It utilizes the fixed order system to organize and audit the stock flow of its product. DMO S.A. sets its orders in a standard basis and specifically for a number of 300,000 product units per annum. Yearly costs of storehouse and security is set to 6 €/unit. Moreover, the cost per order is 200 €.

Estimate the average daily usage of products.

If the supplier of “DMO S.A.” delivers the arranged quantity with a 15 days delay while “DMO S.A.” has a safety stock of 300 units, estimate the reorder level of inventory.

Answer rating: 100% (QA)

the average daily usage is 300... View the full answer