Avery Grocery Store is the only grocery store in Rayville, a small town populated mostly by college

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Avery Grocery Store is the only grocery store in Rayville, a small town populated mostly by college students. Students have been complaining lately because Avery always runs out of macaroni and cheese, the students' favorite food. Avery management decides it needs to calculate a more suitable reorder point. Information about the macaroni and cheese is as follows:


Average daily sales. Average lead time to receive an order Avery's cost per unit. Price charged to customers 500 boxes $


1. What should be the reorder point if Avery does not want to maintain any safety stock?
2. What should be the reorder point if Avery wants to maintain a safety stock of 1,000 boxes of macaroni andcheese?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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