A Company Distributes Repair Parts for High-End Appliances

question 73

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 67 and the lead time in days is 2, what is the reorder point?

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Definitions:

Performance Feedback

Evaluative information provided regarding the efficacy or quality of an individual's work output or performance.

Family Experience

The unique set of relationships, dynamics, traditions, and interactions one has within their family unit, influencing identity and behavior.

Selective Information Processing

The cognitive process by which an individual focuses on specific information while ignoring other pieces of information, often based on biases or pre-existing beliefs.

Manipulating Appraisals

Involves altering the way a situation is perceived in order to manage emotional responses to that situation.