1. A. You normally sell 42 flashlights each day. Your performance cycle is two days. What...
1. A. You normally sell 42 flashlights each day. Your performance cycle is two days. What is your current reorder point?
B. Your business has substantially slowed and you now sell 17 flashlights each day. You also changed your supplier and it takes them five days to deliver your order. Now what is your reorder point?
Homework Answers
A.
Reorder point = Average lead time demand = 42 per day * 2 days = 84 units
B.
Reorder point = Average lead time demand = 17 per day * 5 days = 85 units
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