What will the reorder point be for the item

Assignment Help Operation Management

Reference no: EM131725529

Johnson Corporation has the following information about a product that it carries in stock:

Average demand = 48 units per day

Average lead time = 10 days

Item unit cost = $61 for orders of less than 400 units

Item unit cost = $56 for orders of 400 units or more

Ordering cost = $37

Inventory carrying cost = 20%

The business year is 300 days

Standard deviation of demand = 3.1 units

Standard deviation of lead time = 2 days

Desired service level = 97.5%

1. What will the annual inventory turnover rate be for this item? (Round your answer to 1 decimal place.)

2. What will the reorder point be for the item?

Reference no: EM131725529

Questions Cloud

Login form that you find on many web pages : Implement a class LoginForm that simulates a login form that you find on many web pages. Supply methods

Research about the security technologies : Research and evaluate its capabilities, costs, maintenance requirements, flexibility, and feasibility for implementation.

How many use modems to import or export information : Survey employees at your site to find out how many use modems and personal computers to import or export information.

Sketch a suitable op-amp circuit : Sketch a suitable op-amp circuit to give the required output and show the required resistor ratios - Suggest an application for the circuit

What will the reorder point be for the item : What will the annual inventory turnover rate be for this item? What will the reorder point be for the item?

Why are risk data quality assessment important : The project manager should have the best quality data in order to make the best decisions in regard to the direction of the project. Why are Risk data quality

How is network activity differentiated : Network activity can be classified as normal, suspicious, or malicious. How is network activity differentiated? Provide examples.

Communication is social in that it involves people : Communication is "social" in that it involves people and interactions, whether face-to-face or mediated.

Improve a company business model : How is Virtualization used to improve a company business model?

User Account

All Pages