Lead Time for One of West Manufacturing's Fastest Moving Products

question 59

Essay

Lead time for one of West Manufacturing's fastest moving products is 7 days. Demand during this period averages 80 units per day. What would be an appropriate re-order point?

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Definitions:

Agricultural Commodities

Products derived from farming or the cultivation of land such as grains, vegetables, fruits, and livestock.

Supply Elasticities

Measures of how responsive the quantity supplied of a good is to a change in its price.

Long-Run Equilibrium

A state in which all factors of production and outputs are adjustable, and all economic processes are fully adapted to any changes.

Competitive Supply

The total quantity of a good or service that is available to consumers, determined by the sum of all individual suppliers’ quantities at each price level in a competitive market.