Answer:
reorder point= 39 units
Explanation:
given data:
Annual demand = 2240 units.
No of days = 320
lead time is 4 working days
As we know,
Reorder point= Lead time demand + Safety stock
Lead time demand = Average daily usage * lead time
Average daily usage = \frac{Annual demand}{No of days operating in year }
average Daily usage = \frac{2080}{320}= 6.5 units per day.
Lead time demand = 6.5* 4 = 26 units.
Safety stock = 2 days of average demand
= 2*6.5 = 13 units.
Hence reorder point= 26 + 13= 39 units.
