Reorder Point & Safety Stock EZ Mil Company purchases 7,500 units of its lone product per annum. The company works 300 days per year. The normal purchase lead time is 7 working days while maximum lead time is 10 working days. REQUIRED: A) How many units should EZ Mil maintain as safety (buffer) stock? B) What is EZ Mil's reorder point for the laundry soaps?

Reorder Point & Safety Stock EZ Mil Company purchases 7,500 units of its lone product per annum. The company works 300 days per year. The normal purchase lead time is 7 working days while maximum lead time is 10 working days. REQUIRED: A) How many units should EZ Mil maintain as safety (buffer) stock? B) What is EZ Mil's reorder point for the laundry soaps?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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