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The following information regarding inventory policy was assembled by the JRJ Corporation. The company uses a 50-week year in all calculations.
The reorder point is:
Suggested Answer: B
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Choice 'b' is correct. A 50-week year would mean that 200 units are sold per week (10,000 units per year over 50 weeks). Therefore, 800 units are sold during the lead-time (4 weeks 200 units per week). Required safety stock is 1,300 units, which means that no less than 1,300 units must be on hand at any time. The reorder point is then 2,100 units (1,300 safety stock plus the 800 units used during lead time).
Choices 'a', 'c', and 'd' are incorrect, per the above Explanation:.
31 comments · newest first
LA
Latia
10 months ago
Totally agree with 3,300 units!
ZI
Zita
11 months ago
Wait, are we sure about these numbers?
JA
Janine
11 months ago
Definitely 5,200 units!
JO
Jospeh
11 months ago
I think it’s actually 2,100 units.
SE
Selma
11 months ago
The reorder point is 3,300 units.
RE
Reyes
12 months ago
I think I recall that the reorder point should be higher if the lead time is longer. I’m leaning towards option A, but I’m not completely confident.
DA
Dahlia
12 months ago
I’m a bit confused about the units needed for the reorder point. Was it based on average weekly sales or something else?
AL
Albert
12 months ago
This question feels similar to the practice problems we did on inventory management. I think the reorder point is based on lead time and demand.
VO
Vonda
1 year ago
I remember we calculated reorder points in class, but I’m not sure how to apply it here with the 50-week year.
FR
Frankie
1 year ago
This type of question can be tricky, but I've practiced similar problems. I'll start by identifying the relevant variables and then apply the reorder point formula step-by-step to arrive at the solution.
LY
Lynda
1 year ago
Hmm, I'm a bit unsure about this one. The information seems clear, but I want to make sure I'm not missing any key details that could impact the calculation. I'll need to double-check my work.
GE
Geoffrey
1 year ago
This looks like a straightforward inventory management question. I'll need to carefully review the information provided and apply the relevant formulas to determine the reorder point.
SV
Svetlana
1 year ago
Okay, I think I've got this. The key is to use the given information on lead time, usage, and safety stock to calculate the reorder point. I'm confident I can get the right answer.
EM
Emerson
2 years ago
I'm not sure, but I think the answer might be C) 1,300 units because of the company's 50-week year calculation.
LI
Lizette
2 years ago
I agree with Carin, the reorder point seems to be 2,100 units.
BR
Brynn
2 years ago
Hmm, let me see. 50-week year, 10-week lead time, 210 units per week. Yep, 2,100 units is the right answer. I wonder if the exam writer is trying to trick us with those other options. Better double-check my work just in case!
ME
Mel
2 years ago
It's always good to double-check, especially in tricky exam questions.
DO
Dorinda
2 years ago
Let's make sure to review our work carefully before finalizing our answer.
MA
Ma
2 years ago
I agree, the calculations match up with that option.
RE
Rebbecca
2 years ago
I think you're right, 2,100 units seems to be the correct answer.
DU
Dusti
2 years ago
The other options seem like distractions, but I'm confident in our answer.
IN
Inocencia
2 years ago
I think it's important to double-check our calculations just to be sure.
RA
Raymon
2 years ago
I agree, the reorder point is definitely 2,100 units.
CH
Charolette
2 years ago
Oh, come on! This is a piece of cake. The reorder point is 2,100 units. Anyone who can't figure that out shouldn't be taking this exam.
ME
Melvin
2 years ago
I think the correct answer is B) 2,100 units. The calculation seems straightforward, and I don't see any reason to select a different option.
CA
Carin
2 years ago
I think the answer is B) 2,100 units.
VA
Vallie
2 years ago
The reorder point is clearly 2,100 units. The lead time is 10 weeks, and the average weekly usage is 210 units. So, the reorder point is the lead time multiplied by the average weekly usage, which is 10 * 210 = 2,100 units.
AR
Art
2 years ago
So, reorder point is 10 * 210 = 2,100 units.
JO
Josue
2 years ago
Average weekly usage is 210 units.
HU
Hui
2 years ago
Lead time is 10 weeks.
DA
Danilo
2 years ago
Reorder point is 2,100 units.