Question: Inventory Management Problem 2 The following information is available for Edgar Corporation's Material D Annual Usage12,600 units Working days per year360 days Normal Lead Time20

Inventory Management

Problem 2

The following information is available for Edgar Corporation's Material D

Annual Usage12,600 units

Working days per year360 days

Normal Lead Time20 days

The units of Material D are required evenly throughout the year.

What is the re-order point?

a.35 unitsb. 20dayc. 700 unitsd. 630 units

Assuming that occasionally, the Company experiences delay in the delivery of Material D, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain and what is the reorder point?

Safety StockRe-order Point

a.3501,050

b.350700

c.01,050

d.1,050700

Provide a solution every problem

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