Jill's Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of

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Jill's Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require two months' lead time. Jill desires to maintain a safety stock of sufficient material to meet one month's demand. What is Jill's reorder point?
a. 3,000
c. 9,000
b. 6,000
d. 12,000
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Horngrens Cost Accounting A Managerial Emphasis

ISBN: 978-0134475585

16th edition

Authors: Srikant M. Datar, Madhav V. Rajan

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