Question: E97 (Appendix 9A) Selected information relating to an inventory item carried by Mayer- Wright, Inc., is given below: 1 Maximum usage 100 units per week
E97 (Appendix 9A) Selected information relating to an inventory item carried by Mayer- Wright, Inc., is given below: 1 Maximum usage 100 units per week Average usage 60 units per week Lead time 3 weeks Management is trying to determine the proper safety stock and reorder point for this inven- tory item. 1. Assume that no safety stock is to be carried. What is the reorder point? 2. Assume that a full safety stock is to be carried. a. What would be the size of the safety stock in units? b. What would be the reorder point
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