An Inventory Item of Nullabor Manufacturing Has an Average Daily

question 19

Essay

An inventory item of Nullabor Manufacturing has an average daily demand of 20 units with a maximum daily demand of 24 units.The economic order quantity (EOQ)is 200 units.Without safety stocks,the reorder point is 50 units.Safety stocks are set at 94 units.
Required:
a.Determine the reorder point with safety stocks.
b.Determine the maximum inventory level.
c.Determine the average lead time.
d.Determine the maximum lead time.
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Definitions:

Customer Relationship

The approach a company takes to managing its interactions with current and potential customers, often to improve loyalty and engagement.

Niche Segments

Specific, narrowly defined market segments targeted by businesses with tailored products or services.

Advertising Campaigns

Coordinated marketing efforts to reinforce or assist with a business goal using one or more social media platforms.

Marketing Variables

Are factors that can be controlled by a company to influence consumers' purchase decisions.