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LESSON #10: INVENTORY MANAGEMENT HOMEWORK REORDER POINT ] ABC Company computed its EOQ equal to...

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Accounting

LESSON #10: INVENTORY MANAGEMENT HOMEWORK REORDER POINT ]

ABC Company computed its EOQ equal to 500 units/purchase order. The average lead time is 5 days and the average usage is 10 units/day.

REQUIRED:

1. What is the reorder point with no variability in either lead time or usage?

2. What is the reorder point if the lead time can be as high as 8 days?

3. What is the reorder point if the usage can be as high as13 units/day?

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