Question: Using the data provided and given a constant demand, assuming a 365 day year and a desired safety stock of 10 units, what is the

Using the data provided and given a constant demand, assuming a 365 day year and a desired safety stock of 10 units, what is the reorder point rounded down to the next whole number.

Price = $100

Demand = 1,000

Ordering cost = $10

Interest = 5%

Holding cost = $0.50

Lag time = 7 days

A. 9 units

B. 19 units

C. 29 units

D. 34 units

E. can not tell from the information given

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Using the data provided and given a constant demand and assuming a 365 day year, how many orders are placed each year? Price = $100 Demand = 2,500 Ordering cost = $20 Interest = 6% Economic Order...

Example: Sam's Pet Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is...

Question 1 A company has recorded the last five days of daily demand on their only product.Those values are 143 , 121 , 126 , 129 , and 145 .The time from when an order is placed to when it arrives...

Question number 6 and onwards Economic order quantity: The ideal amount of inventory that will be ordered with each replenishment cycle to minimize inventory related costs e.g., holding costs,...

The total labor hours required by these four products for the next quarter is (Enter your response as a whole number.) More Info the item's price. Which supplier and what order quantity should the...

Group: PERON A+ PERSON B +PERSON C 1- Introduction 2- Literature a. Definition of operation management b. Definition of operation strategy and why it is important c. Components of operations strategy...

Inventory Management Warm-up Questions (7 points) a. (3 points) A company is planning for its financing needs and uses the basic fixed-order quantity inventory model. What is the total cost (T) of...

1. Inventory Management Warm-up Questions (7 points) a. (3 points) A company is planning for its financing needs and uses the basic fixed-order quantity inventory model. What is the total cost (T) of...

Suppose you plan to sell t - shirts for a concert. Assume that you buy t - shirts at $ 5 ? unit from a supplier and you can sell it at $ 1 0 ? unit. The leftovers can be sold in eBay at $ 2 ? unit....

Having difficulty with this lab :/ any kind of help would be useful and very much appreciated! Learning Objectives: Deeper understanding about the costs associated with an Ordering policy (i.e. an...

Conduct a thorough analysis of ONE of the three heroes we have read about from the Ancient World Achilles, Odysseus or Rama and analyze how the selected character deals with his own power and that...

All calculations must be shown in an orderly manner to obtain part Question Microprocessor Ltd. (Microprocessor) is a manufacturer of robots. Microprocessor shares are listed on Toronto Stock...

A difference in investment policy statements for institutional investors and individual investors most likely relates to the inclusion of: client constraints investment objectives procedural and...

Discuss several ways ( at least four ways ) to improve the requirement process and thus, a project team can avoid a situation where too many changes to the project requirements occur at the later...

=+1. Do you think of CSR in terms of a dichotomy, or do you think of CSR in terms of a continuum? If it is the former, what advantages does this approach provide? If it is the latter, what...

=+4. Why is it important that an audit of any aspect of a companys operations be conducted by an independent organization? What benefits are there for a firm in working together with NGOs to conduct...

=+5. Respond to the following quote concerning Nikes relationship with its global network of over 700 independent supplier factories: The relationship is delicate. NGOs have berated firms such as...