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Lead time for one of your fastest-moving products is 24 days. Demand during this period averages 105 units per day a) What wo
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Answer #1

The reorder point is a threshold stock that any organization does not want to go below. It is calculated as follows:

Reorder point = daily usage/demand * Lead time .

In the given case, Lead time is 24 days and demand is average105 units per day. Therefore,

Reorder point = 105*24

=2,520

Therefore, the reorder point is 2,520.

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