Explore BrainMass

Explore BrainMass

    EOQ: What is the reorder point for risk of being out of stock? What is safety stock?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    54,000 units per year at $8 per unit
    360 day-per year basis
    $90 cost to place a single order
    $3 to carry on unit in inventory one year
    lead-time % of occurrence
    6 75
    7 10
    8 5
    9 5
    10 5

    Company willing to assume 15% risk of being out of stock
    what is the safety stock...what is the reorder point

    Company willing to assume 5% risk of being out of stock
    what is the safety stock ....what is the reorder point

    © BrainMass Inc. brainmass.com March 4, 2021, 6:20 pm ad1c9bdddf


    Solution Preview

    See the attached file.

    Posting ID: 40717 Mathematics, Other Other Spot ...

    Solution Summary

    The solution shows all the calculations needed and solves the problems with extra explanation.