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K Annual demand for the notebook binders at Duncan's Stationery Shop is 10,000 units. Dana Duncan operates he business 300 days per year and finds that deliveries from her supplier generally take 5 working days Calculate th reorder point for the notebook binders that she stocks. The reorder point for the notebook binders is units (round your response to the nearest whole number)

K Annual demand for the notebook binders at Duncan's Stationery Shop is 10,000 units. Dana Duncan operates he business 300 days per year and finds that deliveries from her supplier generally take 5 working days Calculate th reorder point for the notebook binders that she stocks. The reorder point for the notebook binders is units (round your response to the nearest whole number)

Practical Management Science
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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**Text for Educational Website** **Topic: Calculating Reorder Points** Annual demand for the notebook binders at Duncan's Stationery Shop is 10,000 units. Dana Duncan operates her business 300 days per year and finds that deliveries from her supplier generally take 5 working days. Calculate the reorder point for the notebook binders that she stocks. **Formula:** Reorder Point = (Daily Usage Rate) × (Lead Time in Days) 1. **Daily Usage Rate**: - Annual Demand / Operating Days Per Year = 10,000 units / 300 days = 33.33 units per day 2. **Lead Time**: - 5 days 3. **Reorder Point Calculation**: - 33.33 units/day × 5 days = 166.65 units - Round to the nearest whole number: 167 units **Answer**: The reorder point for the notebook binders is 167 units. **Note**: It is important for businesses to calculate the reorder point accurately to maintain efficient inventory levels and ensure continuous operation without stockouts.
Transcribed Image Text:**Text for Educational Website** **Topic: Calculating Reorder Points** Annual demand for the notebook binders at Duncan's Stationery Shop is 10,000 units. Dana Duncan operates her business 300 days per year and finds that deliveries from her supplier generally take 5 working days. Calculate the reorder point for the notebook binders that she stocks. **Formula:** Reorder Point = (Daily Usage Rate) × (Lead Time in Days) 1. **Daily Usage Rate**: - Annual Demand / Operating Days Per Year = 10,000 units / 300 days = 33.33 units per day 2. **Lead Time**: - 5 days 3. **Reorder Point Calculation**: - 33.33 units/day × 5 days = 166.65 units - Round to the nearest whole number: 167 units **Answer**: The reorder point for the notebook binders is 167 units. **Note**: It is important for businesses to calculate the reorder point accurately to maintain efficient inventory levels and ensure continuous operation without stockouts.
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