An Inventory Item of XYZ Manufacturing Has an Average Daily

question 104

Essay

An inventory item of XYZ Manufacturing has an average daily demand of 10 units with a maximum daily demand of 12 units.The economic order quantity is 200 units.The reorder point is 50 units.Safety stocks are set at 94 units.Required:
a.Determine the inventory level at the time of reordering.
b.Determine the purchase order lead time.
d.Determine the maximum purchase order lead time that the company can experience before it has a stockout.

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Definitions:

Counting

The action of determining the total number of objects or entities in a collection or group.

Workforce-focused

Pertaining to strategies, policies, or practices that are centered on the workforce, aiming to improve employee satisfaction, skill development, and productivity.

Leadership Development

A systematic approach to expanding the leadership abilities and skills of individuals within an organization or team.

Absenteeism

The habitual non-presence of an employee at their job, which can be habitual or intentional, typically without a good reason.