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An Inventory Item of Avizone Corp

question 31

Essay

An inventory item of Avizone Corp. has an average daily demand of 25 units with a maximum daily demand of 30 units. The economic order quantity is 500 units. Without safety stocks, the reorder point is 125 units. Safety stocks are set at 235 units.
Required:
a.Determine the reorder point with safety stocks.
b.Determine the maximum inventory level.
c.Determine the average lead time.


Definitions:

Viral Reassortment

Multiple strains of virus infect a host simultaneously and swap genes.

Horizontal Gene Transfer

Transfer of genetic material between existing individuals.

Gene Exchange

The process by which genes are transferred from one genome to another through mechanisms such as transformation, conjugation, and transduction, or exchanged between chromosomes through recombination.

Vibrio Cholerae

A bacterium that causes cholera, a severe diarrheal illness, through contaminated water or food.

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