Question the production demand for widgets for a 250-workday year is 7,500 units. ordering costs are $25.00 per order and carrying costs are $9.00 per unit per year. four days must be allowed between order placement and order receipt. what is the reorder point, assuming known and constant variables?

120

Explanation:

Data provided in the question:

Number of workdays in a year = 250

Demand, D = 7,500 units

Ordering costs, F = $25.00 per order

Carrying costs, C = $9.00

Lead time = 4 days

Now,

Reorder point = Lead Time in days × Average Daily Demand

also,

Average Daily Demand = Demand ÷ Number of workdays in a year

= 7500 ÷ 250

= 30

Thus,

Reorder point = 4 × 30

= 120

c

explanation:

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