Reorder Point Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company...
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Accounting
Reorder Point
Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap is as follows:
| Economic order quantity | 6,300 units |
| Average daily usage | 315 units |
| Maximum daily usage | 375 units |
| Lead time | 4 days |
Required:
1. What is the reorder point assuming no safety stock is carried?
units
2. What is the reorder point assuming that safety stock is carried?
units
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