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Cyco Cyco
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6 years ago
The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Currently, the company is ordering 500 units each time an order is placed. Assuming the company uses a safety stock of 20 units resulting in a reorder point of 60 units, what is the expected lead-time for delivery?
A) 4 days
B) 5 days
C) 6 days
D) 7 days
E) None of the above
Textbook 
Quantitative Analysis for Management

Quantitative Analysis for Management


Edition: 12th
Authors:
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somchaipsomchaip
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6 years ago
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Cyco Author
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6 years ago
Correct Slight Smile TY
patod1
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Yesterday
Good timing, thanks!
Mkersey12
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2 hours ago
Thanks
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