What is the re-order point

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Reference no: EM1389999

A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35% of the purchase price per crate. Ordering costs are $28. Currently the manager orders once per month.

If the order lead-time is two weeks (ie 0.5 month) what is the re-order point?

Reference no: EM1389999

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What is the re-order point : The manager has assigned an annual carrying cost of 35% of the purchase price per crate. Ordering costs are $28. Currently the manager orders once per month.If the order lead-time is two weeks (ie 0.5 month) what is the re-order point?

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