What is the re-order point should the company desire a 90% safety from stock-out? Answer: b. Determine the company's safety stock if the normal usage is 100. Answer: 3. The Inventory Company' data are as follows: Average re-order period Optimum number of orders per year Average daily usage Cost to store one unit per year Cost of stock out per unit per time` Usage during re-order period 80 90 100 115 125 150 175 Frequency 4 6 10 35 20 15 10 25 days 10 per year 4 units $5 P20 0
What is the re-order point should the company desire a 90% safety from stock-out? Answer: b. Determine the company's safety stock if the normal usage is 100. Answer: 3. The Inventory Company' data are as follows: Average re-order period Optimum number of orders per year Average daily usage Cost to store one unit per year Cost of stock out per unit per time` Usage during re-order period 80 90 100 115 125 150 175 Frequency 4 6 10 35 20 15 10 25 days 10 per year 4 units $5 P20 0
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 5PEA
Related questions
Question
![What is the re-order point should the company desire a 90% safety from stock-out?
Answer:
b. Determine the company's safety stock if the normal usage is 100.
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69df46e6-b801-4cd9-b961-48857fd99249%2F6cc33095-aa4d-41ff-b86f-8bf6a6beb833%2Fvcj44cf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What is the re-order point should the company desire a 90% safety from stock-out?
Answer:
b. Determine the company's safety stock if the normal usage is 100.
Answer:
![3. The Inventory Company' data are as follows:
Average re-order period
Optimum number of orders per year
Average daily usage
Cost to store one unit per year
Cost of stock out per unit per time`
Usage during
re-order period
80
90
100
115
125
150
175
Frequency
4
6
10
35
20
15
10
25 days
10 per year
4 units
$5
P20
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69df46e6-b801-4cd9-b961-48857fd99249%2F6cc33095-aa4d-41ff-b86f-8bf6a6beb833%2Fdgwlf5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. The Inventory Company' data are as follows:
Average re-order period
Optimum number of orders per year
Average daily usage
Cost to store one unit per year
Cost of stock out per unit per time`
Usage during
re-order period
80
90
100
115
125
150
175
Frequency
4
6
10
35
20
15
10
25 days
10 per year
4 units
$5
P20
0
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