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.

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Definitions:

Neurotransmitters

Chemical messengers that transmit signals across the synaptic space from one neuron to another in the brain.

Neural Impulse

An electrical signal that travels along the axon of a neuron, transmitting information between neurons or from neurons to muscles.

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, acting as the principal pathway for transmitting information between the brain and the rest of the body.

Neurons

The fundamental units of the brain and nervous system responsible for receiving sensory input from the external world, processing this information, and sending commands to the body.