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What is the reorder point

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Reference no: EM132977016

Question - The Anita Hotel purchases 136,800 units of mini soap bars per year. The average purchase lead time is 5 days. Maximum lead-time is B days. The company works 360 days per year.

REQUIRED -

a. Units of safety stock that the Company should carry

b. The reorder-point for bleaching soap.

c. Assume that the lead time is always 5 days and no delay in delivery has been experienced by the company:

i. What is the reorder point?

ii. How many units of safety stock must be kept by the company in this case?

Reference no: EM132977016

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