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RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days   Determine the following: Reorder point Reorder point if maximum daily usage is 2000 units  Safety stock

RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days   Determine the following: Reorder point Reorder point if maximum daily usage is 2000 units  Safety stock

Cornerstones of Cost Management (Cornerstones Series)
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 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days

 

Determine the following:

  1. Reorder point

  2. Reorder point if maximum daily usage is 2000 units 

  3. Safety stock 

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