Final answer:
The reorder point for a product with a lead time of 21 days and a daily demand of 100 units is calculated by multiplying the two, resulting in a reorder point of 2100 units.
Step-by-step explanation:
The reorder point for a product is the level of inventory which triggers an action to replenish that particular inventory stock. It is primarily used in inventory management and is calculated based on the lead time demand for a product. In this scenario, the lead time for one of the fastest-moving products is 21 days and the average demand during this period is 100 units per day.
To calculate the reorder point, you multiply the daily demand by the lead time in days:
- Daily demand = 100 units
- Lead time = 21 days
- Reorder point = Daily demand × Lead time
- Reorder point = 100 units/day × 21 days
- Reorder point = 2100 units
Therefore, the reorder point is 2100 units.