The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is$64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventorycarrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005is used.Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working daysto deliver that order. What should the purchasing manager’s reorder point be?) A. 12ОВ. 30Ос. 36O D. 24O E. 5

From the above given information, Demand for SKU OO5, d = 1500 units. Unit price of SKU 005, u = $64…

Answered: The demand for a particular part called…

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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The demand for a particular part called SKU 005 is 1,200 units a year. The cost of one SKU 005 is $40.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working days to deliver that order. What should the purchasing manager's reorder point be? O A. 24 O B. 36 O C. 30 O D. 5 O E. 12
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