Answered

A small appliance manufacturer uses 9,810 spools of zip wire every 45 working days. The lead time for the wire is 13 days. Safety stock is 5 days' usage. What is the reorder point?


The formula: Stock Reorder Point = (Daily Usage * Lead Time in Days) + Safety Stock

Verified Answer :

MissPhiladelphia

Hi, thank you for posting your question here at Brainly.

Since you are given with a formula, then we should make us of it. Substituting the appropriate values from the problem statement,

Stock Reorder Point  = (9810 spools/45 working days)*13 days
Stock Reorder Point = 2834 units

JeanaShupp

Answer: 2839

Step-by-step explanation:

Given: The number of spools used by manufacturer in 45 days= 9810

Thus, the number of spools used in 1 one day =\(\frac{9810}{45}=218\ spools\)

Thus, Daily usage = 218

Lead time in days = 13

Safety stock = 5

According to the given formula, the reorder point is given by :-

\(\text{Stock Reorder point = (Daily Usage*Lead Time in days)+Safety stock}\\\\\Rightarrow\text{Stock Reorder point }= 218\times13+5=2839\)

Hence, Stock Reorder Point = 2839

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