Shawgo Corporation Is Open 360 Days During the Year, and Has

question 220

Multiple Choice

Shawgo Corporation is open 360 days during the year, and has an annual demand of 170,000 units for its products. Its carrying cost per unit is $1.50, and its order costs are $250 per order. Additionally, the company wants to have 6 days' worth of sales in its inventory before it reorders. Given this information, calculate the company's reorder point.

• A) 2,833 units
• B) 2,933 units
• C) 3,033 units
• D) 3,133 units
• E) 3,233 units

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Definitions:

Promotional Strategy

The plan devised by a company to increase awareness of its products or services, encourage sales, and improve market position.

Pricing Strategy

An approach businesses use to set the prices for their products or services based on market conditions, production costs, competitor prices, and company objectives.

Distribution Strategy

The plan a business uses to make its products or services available to customers, including channels, coverage, and logistics.

Product Strategy

An action plan for managing a product throughout its lifecycle, focusing on introducing, growing, and maintaining market share.