1800 units are the reorder point.
Option B. 1800 units.
Reorder Point = Maximum usage rate × Maseimutin lead time.
-> In given the Mancimum Sells of 900 hard drives.
Per week is the Maximum usage rate
and
Purchase order Lead time. 2 weeks is the maximum Lead time
is maximum
So
Reorder Point = 900 x 2
Reorder Point. = 1800 unit
A reorder point (ROP) is a specific level at which inventory needs to be replenished. That means it will tell you when to order so you don't run out of stock.
Reorder Point formula is Lead Time Requirement + Safety Stock. Of course, to do an accurate calculation, you need to determine your lead time and safety stock needs.
Berkshire Ltd. sells 900 hard drives per week. Purchase-order lead time is 2 weeks and the economic-order quantity is 1625 units. What is the reorder
a. 1625 units
b. 1800 units
C. 1450 units
d. 3250 units
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