A Company Distributes Repair Parts for High-End Appliances

question 67

Short Answer

A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.
-If the daily demand is 30 and the lead time in days is 3, what is the reorder point?

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Definitions:

Involvement

The degree of engagement and participation an individual or group has in a particular activity or context.

Emotional Intelligence

The proficiency to become aware of, oversee, and display emotions, while also maintaining empathetic and wise interactions with others.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can enhance personal and professional growth.

Highest Level

Refers to the uppermost tier or maximum degree of something, such as achievement, authority, or quality.