What is reorder point when this demand uncertainty exists

Assignment Help Operation Management

Reference no: EM132113877

Reorder Point

Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days.

Required:

1. Calculate the reorder point, using Equation 20.3.

units

2. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?

Reference no: EM132113877

Questions Cloud

Functions does code of ethics perform : Which of the following functions does a code of ethics perform? Which of the following is true of corporate ethics?

According to the similar virtues of different societies : Virtue ethics is the concept of living your life according to the similar virtues of different societies.

Information in relation to their own ethical standards : the information available to people to resolve an ethical dilemma, and draws conclusions based on that information in relation to their own ethical standards.

Case study discuss the porter generic strategies : According to case study discuss the porter’s generic strategies which strategies are better for this company?

What is reorder point when this demand uncertainty exists : Calculate the reorder point, using Equation 20.3. What is the reorder point when this demand uncertainty exists?

One of the four basic categories of ethics : Which of the following is one of the four basic categories of ethics?

Statements describe the terms morals and values : Which of the following statements describe the terms "morals" and "values"?

For what value of ordering would its action be optional : Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. For what value of ordering would its action be optional?

In litigation the parties must be represented by attorneys : In litigation the parties must be represented by attorneys. Litigation is classified as.

User Account

All Pages