An Inventory Item of Kalgoorie Manufacturing Has an Average Daily

question 44

Essay

An inventory item of Kalgoorie Manufacturing has an average daily demand of 30 units with a maximum daily demand of 27 units.The economic order quantity (EOQ)is 250 units.Without safety stocks,the reorder point is 50 units.Safety stocks are set at 112 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:

Wooden Packing Boxes

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Job Training

The process of teaching employees the knowledge and skills necessary to perform their job duties effectively.

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Issues and dilemmas arising from the need to make choices about right and wrong behavior in business practices.

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