Calculate the reorder level 1. Calculate the maximum level of inventory 2. Calculate the minimum (buffer) inventory level
Calculate the reorder level 1. Calculate the maximum level of inventory 2. Calculate the minimum (buffer) inventory level
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Question
Jack Ltd is a market leader in the manufacture of apple juice. They operate a reorder level system of inventory management, and the following information is available for green apples:
Average usage 800 per day
Minimum usage 540 per day
Maximum usage 1260 per day
Lead time for replenishment 16 - 20 per day
Reorder quantity 19,500 apples
a. Calculate the reorder level
1. Calculate the maximum level of inventory
2. Calculate the minimum (buffer) inventory level
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