Reorder Point Computation
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Annual demand for the notebook binders at Duncan's Stationery Shop is 10,500 units.
Dana Duncan operates her business 300 days per year and finds that deliveries from her supplier generally take 21 working days. Calculate the reorder point for the notebook binders that she stocks.
Round your answer to the nearest whole number; for example, 1234 .
Please show your work.
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Solution Summary
This solution provides a calculation of a reorder point based on given consumption levels as well as written explanations.
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The reorder point (R) is a sum of average consumption during lead time (C) and safety stock(S). R=C+S
We are trying to calculate R.
Consumption per year is 10,500 units. The store operates 300 ...
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