Experiences relatively constant demand

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Reference no: EM133664361

Question

TrueBrew Coffee Ltd experiences relatively constant demand of 24 000 units per year for one of its coffee pod machines. The product, a coffee-making machine, costs the firm $30. Placing an order costs $200 and annual carrying costs are $2 per unit. The firm works 200 days per year and desires a safety stock of 300 units. The lead time for an order is 15 working days. What would be the REORDER POINT (ROP) to ensure the company maintains a workable stock level?

Reference no: EM133664361

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