What Is the Reorder Point for the Following Scenario? the Practice

question 7

Multiple Choice

What is the reorder point for the following scenario? The practice uses 15 packs of 4 $\times$ 4 sterile gauze pads per day. It takes 4 weekdays to receive the order from the medical supply company. The medical practice needs 2 extra days' worth of supplies on hand.

• A) 30 packs
• B) 45 packs
• C) 60 packs
• D) 75 packs
• E) 90 packs

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Definitions:

Customizing

The process of modifying or tailoring products or services to fit specific requirements or preferences of a consumer.

Manufacturing Cost

The total cost incurred by a company to produce goods, including labor, material, and overhead costs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated in advance based on estimated overhead costs and an allocation base.

Machine-Hours

Machine-hours are a measure of the amount of time a machine is operated, used in allocating manufacturing overhead based on usage.