A domestic appliance retailer with multiple outlets sells a popular toaster known as the Autocrisp 2000, for which the following information is available: Average sales 75 per day Maximum sales 95 per day Minimum sales 50 per day Lead time 12-18 days Reorder quantity 1,750 6.3 Based on the data above, at what level of inventory would a replenishment order be issued? A 600 units B 1,125 units C 1,710 units D 1,750 units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...
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A domestic appliance retailer with multiple outlets sells a popular toaster known as the Autocrisp 2000, for

which the following information is available:

Average sales 75 per day

Maximum sales 95 per day

Minimum sales 50 per day

Lead time 12-18 days

Reorder quantity 1,750

6.3 Based on the data above, at what level of inventory would a replenishment order be issued?

A 600 units

B 1,125 units

C 1,710 units

D 1,750 units

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