The China Tee Store sells 100,000 tea bags a year. Additional data are presented below: Selling...

 

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The China Tee Store sells 100,000 tea bags a year. Additional data are presented below: Selling price per bag Purchase cost per bag Ordering cost per order Carrying cost Number of days the company operates in a year Average lead time on purchases Maximum lead time P2.50 P1.50 P5.40 20% of unit cost 250 6 days 13.5 days Compute the reorder point for China Tee Store. (Show in a good accounting form) The China Tee Store sells 100,000 tea bags a year. Additional data are presented below: Selling price per bag Purchase cost per bag Ordering cost per order Carrying cost Number of days the company operates in a year Average lead time on purchases Maximum lead time P2.50 P1.50 P5.40 20% of unit cost 250 6 days 13.5 days Compute the reorder point for China Tee Store. (Show in a good accounting form)

Answer rating: 100% (QA)

To compute the reorder point for China Tee Store we need to consider the usage rate lead time and sa... View the full answer