Solution-What re-order point level does the company need

What re-order point level does the company need

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Reference no: EM132611404

CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have more than 300 retail stores that they serve from a central warehouse. The company uses a 98% service level calculated on the proportion that can be satisfied directly from stock (demand fill rate). The cost for placing an order is $100 and the annual holding cost is 20%. They work 365 days/year:

Question 1: What Safety Stock level does the company need to reach the desired service level?

Question 2: What Re-Order Point (ROP) level does the company need to reach the desired service level?

Reference no: EM132611404

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What re-order point level does the company need : CC Rainger is a business to business distributor of MRO, What Re-Order Point (ROP) level does the company need to reach the desired service level?

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What re-order point level does the company need

Reference no: EM132611404

Reference no: EM132611404

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