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?

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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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?
Transcribed Image Text: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?
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