Foster drugs, inc., handles a variety of health and beauty aid products. a particular hair conditioner product costs foster drugs $2.95 per unit. the annual holding cost rate is 20%. an order-quantity, reorder point inventory model recommends an order quantity of 300 units per order. （1） lead time is one week, and the lead-time demand is normally distributed with a mean of 150 units and a standard deviation of 40 units. what is the reorder point if the firm is willing to tolerate a 1% chance of stock-out on any one cycle?

ROP = 150*1+(2.326*40*1) = 243.04 = 243 units (approx)

Explanation:

Given information -

c = 2.95 $/unit

Annual holding cost = 0.2*2.95 = 0.59 $/unit

Q = 300 units (EOQ)

L = 1 week

Mean demand = 150 units/week

σ= 40 units/week

z = 2.326 at 99 percent service level (1% stock out)

a) Reorder point = Average daily demand + Safety stock = dL+(z σ*\sqrt{L})

ROP = 150*1+(2.326*40*1) = 243.04 = 243 units (approx)

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

3rd the reason why is because of management and leadership