Related questions with answers
Question
A furniture company uses corrugated boxes in working days. It takes days' lead time to get more boxes. Safety stock is boxes. a. How many boxes are used daily? b. What is the reorder point?
Solution
VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 4When the inventory level falls to such a level, where it needs to be replenished, such a level or point is known as reorder point. There are three variables that are required to be known in order to ascertain the reorder point. There is the number of units sold per day that is, daily sales, the number of days that will be taken for the stock to reach the office that is, lead time and a kind of a buffer that corporations keep so that there is no 'zero stock' situation, this is known as safety stock.
Thus,
Create a free account to view solutions
By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Create a free account to view solutions
By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Recommended textbook solutions

Statistical Techniques in Business and Economics
15th Edition•ISBN: 9780073401805 (11 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal1,236 solutions



Financial Algebra: Advanced Algebra with Financial Applications
2nd Edition•ISBN: 9781337271790Richard Sgroi, Robert Gerver3,016 solutions
More related questions
1/4
1/7