What should be the reorder point for part 1002?

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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Std Dev
Demand
Annual
Avg
Weekly
Current On-
Weekly Coefficient of Lead Time
(in weeks)
Hand
Ordering Holding
Backorder
Part
Unit Cost Demand
Demand
Variation
Inventory
Cost
Cost
Cost
1001
8.5
19
6
0.32
2
38
$125
$55
$1,000
$225
$175
$45
$1,000
$1,000
1002
47.25
7
5
0.71
16
112
1003
202.5
0.5
0.8
1.60
6
3
$125
What should be the reorder point for part 1002?
O 52
O 75
O 217
O 146
Transcribed Image Text:Std Dev Demand Annual Avg Weekly Current On- Weekly Coefficient of Lead Time (in weeks) Hand Ordering Holding Backorder Part Unit Cost Demand Demand Variation Inventory Cost Cost Cost 1001 8.5 19 6 0.32 2 38 $125 $55 $1,000 $225 $175 $45 $1,000 $1,000 1002 47.25 7 5 0.71 16 112 1003 202.5 0.5 0.8 1.60 6 3 $125 What should be the reorder point for part 1002? O 52 O 75 O 217 O 146
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