Effect of safety stock on reorder point

Assignment Help Advanced Statistics

Reference no: EM13114858

A company normally orders the EOQ of 120 units and the reorder point is 30 units. However, due to changing conditions, it has become necessary for the company to carry safety stock to prevent stock outs. Which of the following should occur?

a. the order quantity will increase.

b. the order quantity will decrease.

c. the reorder point will increase.

d. the reorder point will decrease.

Reference no: EM13114858

Questions Cloud

Real estate profit for desired return : Kevin wants a return of 50% from his one-year investment in real estate. He believes that he can sell the property at the end of the year for $250,000 and that the property will provide him with income of $50,000.

Find better relative to class using standard deviation : Class where the mean is 85 and the standard deviation is 4.59, who did better relative to their class? Note both did better than the class mean. How do you answer this question?

What is the final temperature : a block of aluminum with the volume of 96.5 g absorbs 65.3 J of heat. If the initial temperature is 31.2 degrees celcius, what is the final temperature.

Identify the magnitude and direction of the resultant magnet : directed into the plane of the computer screen as shown in the figure. Identify the magnitude and direction of the resultant magnetic field at P.

Effect of safety stock on reorder point : A company normally orders the EOQ of 120 units and the reorder point is 30 units. However, due to changing conditions, it has become necessary for the company to carry safety stock to prevent stock outs. Which of the following should occur?

Explain what is the relationship job satisfaction : Explain What is the relationship between job satisfaction and organizational commitment? Job satisfaction and employee engagement? Which is the stronger relationship?

Cannondale gross profit and operating income : The following information was reported on the income statement of Cannondale in one of its early years of operation. Sales revenues, $450,000; Cost of goods sold, $200,000; Selling, general, and administrative, $150,000; Interest expense, $30,000.

Describe how each of these hormones contributes : Select two hormones Describe how each of these hormones contributes to homeostasis. Especially interesting are hormones that are antagonists relative to specific functions of the body.

Explain how fast should the bat fly in order to hear a beat : This bat hears its own sound plus the sound reflected by the wall. Explain how fast should the bat fly in order to hear a beat frequency of 10.0Hz?

User Account

All Pages