16. The following information pertains to Annie Corporation's Material X: Annual usage 25,200 units 360 days Working days per year Normal lead time in working days Safety stock 30 days 1,050 units The maximum lead time in working days and the reorder point for Material X are Maximum lead time = 30 days; Reorder point = 2,100 Maximum lead time = 15 days; reorder point = 1,050 Maximum lead time = 45 days; reorder point : 3,150 Maximum lead time = 45 days; reorder point 2,100
16. The following information pertains to Annie Corporation's Material X: Annual usage 25,200 units 360 days Working days per year Normal lead time in working days Safety stock 30 days 1,050 units The maximum lead time in working days and the reorder point for Material X are Maximum lead time = 30 days; Reorder point = 2,100 Maximum lead time = 15 days; reorder point = 1,050 Maximum lead time = 45 days; reorder point : 3,150 Maximum lead time = 45 days; reorder point 2,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:16. The following information pertains to Annie
Corporation's Material X:
Annual usage
25,200 units
360 days
Working days per year
Normal lead time in working days
Safety stock
30 days
1,050 units
The maximum lead time in working days and the
reorder point for Material X are
Maximum lead time = 30 days; Reorder point =
2,100
Maximum lead time = 15 days; reorder point =
1,050
Maximum lead time = 45 days; reorder point :
3,150
Maximum lead time = 45 days; reorder point
2,100
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