One of our suppliers (TSX Innovations) just contacted me about the possibility of slower production next...

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One of our suppliers (TSX Innovations) just contacted me about the possibility of slower production next year due to some supply chain difficulties on their end. We rely on a component made by TSX to produce Art. Last year, our average daily use of this component was 6.63 and the average delivery lead time was 30 days per component. I would like to retain at least 265 units of the TSX component as safety stock. What reorder point should we set for the TSX components? One of our suppliers (TSX Innovations) just contacted me about the possibility of slower production next year due to some supply chain difficulties on their end. We rely on a component made by TSX to produce Art. Last year, our average daily use of this component was 6.63 and the average delivery lead time was 30 days per component. I would like to retain at least 265 units of the TSX component as safety stock. What reorder point should we set for the TSX components?

Answer rating: 100% (QA)

To calculate the reorder point for the TSX components we first ... View the full answer