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Mary's Bakery Can Predict with Virtual Certainty the Demand for Its

question 19

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Mary's Bakery can predict with virtual certainty the demand for its products.Mary's sells 70 cupcakes per week.Purchase-order lead time is 4 weeks and the economic-order quantity is 95 cupcakes.What is the reorder point?


Definitions:

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person, out of the drawer's bank account.

Clearing

The process of reconciling purchases and sales of various securities, commodities, or currencies and ensuring the correct transfer of funds.

Collection Float

The time period between when a check is deposited into a bank account and the funds become available.

Ledger Balance

represents the total balance in a general ledger account at the beginning of each day, including all transactions that have been posted.

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