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What is the reorder point with no variability

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Question: Spencer Industries annually buys 900,000 units of Part XY. The EOQ is 2,000 units. Spencer Industry's average usage equals 3,000 units/day (900,000 units/300 working days) and the average lead-time for ordering Part XY is 8 days.

What is the reorder point with no variability in either usage or lead-time?

What is the level of safety stock if usage could be as high as 3,200 units/day?

What is the level of safety stock if lead-time could be as high as 10 days?

Reference no: EM132758244

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