Find the reorder point for ordering shirts

Reference no: EM1315857

Evaluation of Re-order level of books Inventory of college.

The bookstore at Smith College purchases sport shirts with the college logo to sell from a local vendor. The vendor sells the sport shirts to the college for $38 each. The cost to the bookstore for placing each order is $120. The carrying cost is $5.20 per shirt per year. The bookstore estimates that 1700 sport shirts will be sold over the next year and does not want any shortages. The bookstore sells the shirt for $50 each. There are 260 business days a year for the bookstore. Lead time for filling an order once placed is 2 weeks. The vendor has offered the College Bookstore the following discounts:

Order Size	Discount % of Order	Cost of Shirts from Vendor
1-299	0% discount	$38
300-499	2% discount	$37.24
500-799	4% discount	$36.48
800+	6% discount	$35.72

If the time to fill an order is 10 business days, what is the Reorder Point for ordering shirts?

Reference no: EM1315857

Questions Cloud

What order size should smith college acquire from vendor : Evaluation of EOQ Decisions of college on vendor's order - What order size should Smith College acquire from the vendor? Explain Why?

Augmented matrices to solve the equations : Augmented matrices to solve the equations

Augmented matrices to solve the word problem : Augmented matrices to solve the word problem

Computation of economic order quantity : Computation of Economic Order quantity of Books for college and What is their expected total inventory cost (excluding the unit cost of the shirts)?

Find the reorder point for ordering shirts : Evaluation of Re-order level of books Inventory of college - If the time to fill an order is 10 business days, what is the Reorder Point for ordering shirts?

Inventory with shortage of stock allowance : Evaluation of EOQ - Inventory with shortage of stock allowance Should the bookstore allow shortages? Explain the basis for your answer.

Free or unused capacity of freezer of ice cream : Inventory Decisions - Free or unused capacity of freezer of ice cream How much unused freezer space (in gallons) is leftover from part "a"?

Computation of linear programming technique : Computation of ice cream to be manufactured using the linear programming technique - Determine the amount of ice cream and yogurt the shop should make each week. Explain why this quantity should be made.

The form of augmented matrices : The form of augmented matrices.

User Account

All Pages