Alma Company manufactures sleeping bags. A heavy-duty zipper is one part the company orders from an outside

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Alma Company manufactures sleeping bags. A heavy-duty zipper is one part the company orders from an outside supplier. Information pertaining to the zipper is as follows:

Economic order quantity ...4,200 units

Average daily usage .......200 units

Maximum daily usage .......240 units

Lead time ............3 days

Required:

1. What is the reorder point assuming no safety stock is carried?

2. What is the reorder point assuming that safety stock is carried?

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Cost Management Accounting and Control

ISBN: 978-0324559675

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

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Question Posted: Mar 29, 2012 05:50 AM

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Alma Company manufactures sleeping bags. A heavy-duty zipper is one part the company orders from an outside

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Cost Management Accounting and Control

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