Question

The following information applies to Krynton​ Company, which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation. Annual demand​ (weekly demand​ = 1/52 of annual​ demand) 60 comma 000 units Orders per year 60 Lead time in days 18 days Cost of placing an order $ 150 What is the reorder​ point?

Answer 1

2,967 units

Explanation:

The computation of the reorder point is presented below:

= Demand × lead time + safety stock

where,

Demand equal to

= Expected demand ÷ total number of weeks in a year ÷ number of days in a week

= 60,000 ÷ 52 weeks ÷ 7 days

= 164.835

So, the reorder point would be

= 164.835 × 18 days + 0

= 2,967 units

All other information that is mentioned is not relevant. Hence, ignored it