Answered: Assuming no safety stock, what is the…

Assuming no safety stock, what is the reorder point (R) given an average daily demand of 75 units, a lead time of 8 days and 800 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 reorder point (R) given
an average daily demand of 75 units, a lead time of 8 days
and 800 units on hand

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A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is six days.Usage of the material during lead time is normally distributed with a mean of 42 pounds and a standarddeviation of 4 pounds. When should the raw material be reordered if the acceptable risk of a stockout is 3%?
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.
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.
Lead time for one of your fastest-moving products is 24 days. Demand during this period averages 110 units per day. a) What would be an appropriate reorder point? units (enter your response as a whole number).
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Please help me with show all calculation thanku
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
me EOQ, reorder point, and safety stock Alexis Company uses 905 units of a product per year on a continuous basis. The product has a fixed cost of $49 per order, and its carrying cost is $5 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity. ents un a. Alexis' EOQ is units. (Round to the nearest whole number.) eText edia Librai al Calculat r Resource Enter your answer in the answer box and then click Check Answer. ic Study 3 parts remaining es Clear All Check Answer unication Tools > OK 10 Type here to search 5/1 insert
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Financial accounting