3:A manufacturer maintains an inventory of needles. Inventory consumption is constant at 1200 needles per day and lead time for newneedles is constant at five days. If the manufacturer wishes to maintain a safety stock of 600 needles, what should its reorder point be?OA. 5000OB. 5400F2OC. 4800OD.7200OE. 6600OF. 6000#3A Moving to another question will save this response.80EF3$4DODOOD F4R%5F5TA6MacBook AirY&7◄◄F7U*8► 11F8(9F9O)0F10<<< Question 28 of 42 > >>(4)F11+ 11F12#2dele

Ans) Formula: Reorder Point = Average Daily usage*Lead Time + Safety stock Average daily usage = Inventory = 1200 Solution: Reorder Point = 1200*5 + 600 = 6000 + 600 = 6600Thus, Correct Option is E. 6600

Answered: A manufacturer maintains an inventory…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Similar questions

Discuss ways (at least 3) in which a company can reduce the need for inventories?
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