The reorder point is defined as the lead time demand

Assignment Help Operation Management

Reference no: EM13873213

The reorder point is defined as the lead time demand for an item. In cases of long lead times, the lead time demand and thus the reorder point may exceed the economic order quantity. In such cases, the inventory position will not equal the inventory on hand when an order is placed and the reorder point may be expressed in terms of either the inventory position or the inventory on hand. Consider the economic order quantity model with D=5000 Co = $32 Ch=$2 and 250 working days per year. Identify the reoder point in terms of the inventory position and in terms of the inventory on hard for each of the following lead times.

A 5 days

B 15 days

C 25 days

D 45 days

Reference no: EM13873213

Questions Cloud

What are the benefits and drawbacks of intermodal : What are the benefits and drawbacks of intermodal transportation for international freight?

Draw the cost effectiveness frontier : Draw the Cost effectiveness Frontier - What concept can you attribute this change in treatment choice before and after insurance? Explain.

Analyze the phenomenon of facebook and twitter : For this written assignment, you are to analyze the phenomenon of Facebook and Twitter, and discuss in what ways social media works as a globalizing force. You should explain what the positive and negative cultural implications social media like t..

What is sharing economy : What is sharing economy

The reorder point is defined as the lead time demand : The reorder point is defined as the lead time demand for an item. In cases of long lead times, the lead time demand and thus the reorder point may exceed the economic order quantity. In such cases, the inventory position will not equal the inventory ..

Kirkpatrick evaluation : Kirkpatrick's Evaluation Why or why not would an organization choose to under go an evaluation process before or after training? Is it a good or bad occurrence if unexpected findings that may have unintended implications are found?

Examine relationship between certifications and experience : Examine the relationship between certifications and experience. Do certifications alone identify the job candidates with the most appropriate expertise and work experience?

Impact on the performance due to the convergence of ifrs : Write an article of impact on the performance due to the convergence of IFRS in the agricultural companies in sri lanka - a practice of institutional theory.

Implementation of e-procurement in an enterprise : How would you describe the benefits that accrue from implementation of e-commerce/e-procurement in an enterprise and how would you describe the pitfalls associated with the use of e-commerce/e-procurement in these sectors?

User Account

All Pages