Provide correct answer Assuming no safety stock, what is the re-order point (R) given an average dailydemand of 50 units, a lead time of 10 daysand 625 units on hand?

The question pertains to reorder point. A reorder point (ROP) is the level at which inventory needs…

Answered: Assuming no safety stock, what is the…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 1E: Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of...

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Similar questions

Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of pounds to be issued from safety stock if the new order is four days late.
A 20day elimination period where the cost is $150 a day equates to how much of an out pocket cost at claim time?
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Assume that the moving activity has an expected cost of $80,000. Expected directlabor hours are 20,000, and expected number of moves is 40,000. The best activity ratefor moving isa. $4 per move.b. $1.33 per hour-move.c. $4 per hour.d. $2 per move.e. None of these.
Annual Demand = 10,000 units Days per year considered in average daily demand = 365 Cost to place an order = $10 Holding cost per unit per year = 0.01% of cost per unit Lead time = 3 days Cost per unit = $15 Determine the economic order quantity and the reorder point. Also find the Annual Ordering and Holding Cost. State some significance of the obtained results.
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A products demand in each period follows a Normal distribution with mean of 60 and standard deviation of 10. The order up to level S is 204. Lead time is 2 periods. What is the expected on hand inventory ? Show all formulas used, calculations and results. Do on Black Bd b. What is the stoch out probability. Show all formulas used, calculations and results. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Determine which shipping alternative,one day or three days, is best when the holding cost, of and item is $1,000 per year, the one-day shipping cost is $40, and the three-day shipping cost is :a. $35,b. $30
Suppose the relevant carrying cost per unit per year was $20 and the relevant ordering cost per purchase order was $200. Suppose further that Alpha calculates EOQ after incorrectly estimating relevant carrying cost per unit per year to be $10 and relevant ordering cost per purchase order to be $400. Calculate the actual annual relevant total costs of Alpha’s EOQ decision. Compare this cost to the annual relevant total costs that Alpha would have incurred if it had correctly estimated the relevant carrying cost per unit per year of $20 and the relevant ordering cost per purchase order of $200 Calculate and comment on the cost of the prediction error.
Suppose a four period weighted average is being used to forecast demand. Weights for the periods are: Wt-4 = 0.1 Wt-3 = 0.2 Wt-2 = 0.35 Wt-1 = 0.35 Demand observed in the previous four periods was: At-4 = 15,781 At-3 = 14,539 At-2 = 14,503 At-1 = 14,579 What will be the demand forecast for period t? (Keep one decimal place in your answer).
At current production volume of 100 units, fixed costs are $10 per unit and variable costs are $4 per unit. Production is expected to increase to 120 units in the next period. This is a short-term change within the relevant range. Predict total costs for the next period. $1,680 $1,480 O $1,400 $1,600 $480
Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December. The company has total fixed costs of $60,000. Assume a planned margin of safety of $14,000, what is the breakeven point in ($) value? Select one: O a. 86,000 O b. 46,000 O c. 26,000 O d. 40,000 O e. None of the given answers

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Assuming no safety stock, what is the re- order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand?