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:

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.

Brand Knowledge

The awareness and understanding consumers have about a brand and its attributes, including its products, services, and values.

Resources

Assets that individuals or organizations possess, which can be utilized to achieve goals or complete tasks.

DATA Approach

An analytical framework focusing on Define, Analyze, Target, and Action to drive strategic decision-making based on data insights.