A company has recorded the last five days of daily demand on its only product. Those values are 120, 125, 124, 128, and 133. The

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A company has recorded the last five days of daily demand on its only product. Those values are 120, 125, 124, 128, and 133. The

time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order-quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R)

Business

1 answer:

azamat · Answer 1 · 2023-10-23T22:24:57+03:00

630 is the recorder point.

Safety stock is a term used by logistics personnel to describe additional inventory held to reduce the risk of stock-outs (shortages of raw materials or packaging) due to supply and demand uncertainties. Adequate safety stock allows business operations to continue as planned. Safety stock is held when demand, supply, or production is uncertain and acts as insurance against stockouts.

Safety stock is an additional quantity on hand to reduce the risk of an item being out of stock. This acts as a buffer stock in case sales are higher than expected or the supplier is unable to deliver additional units in the expected time.

Learn more about Safety stock here: brainly.com/question/14054595

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