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On average, a deli shop uses 12 packages of roast beef each day; 4 packages are needed for the safety stock, and the lead time for the delivery is 4 days. What is the order point for roast beef a.44 b.54 c.4 d.28

1 Answer

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Step-by-step explanation:

To calculate the order point for roast beef, we need to consider the average daily usage, safety stock, and lead time.

The order point is the inventory level at which a new order should be placed to replenish the stock. It is calculated by multiplying the average daily usage by the lead time and adding the safety stock.

In this case, the average daily usage is 12 packages of roast beef, the safety stock is 4 packages, and the lead time is 4 days.

Therefore, the order point can be calculated as:

Order Point = (Average Daily Usage * Lead Time) + Safety Stock

Order Point = (12 * 4) + 4

Order Point = 48 + 4

Order Point = 52

So, the correct answer would be b. 54.

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