The average inventory of the company was 4,000 units. The company's current safety stock level is 2,000

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The average inventory of the company was 4,000 units. The company's current safety stock level is 2,000 units. The purchase cost of the inventory is P50 per unit and the carrying cost is 20% of the inventory cost. The ordering cost per unit is P20.

What is the reordering point of the company?

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Foundations Of Finance

ISBN: 9781292318738

10th Global Edition

Authors: Arthur Keown, John Martin, J. Petty

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Posted Date: May 13, 2024 07:29 AM

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The average inventory of the company was 4,000 units. The company's current safety stock level is 2,000

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Expert Answer:

The reorder point ROP for the company can be calculated using the following formula ROP Average Dail... View the full answer

Foundations Of Finance

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