Federal Holdings consumes about 72,000 kg of flour per year. The company is open 360 days a year, The ordering cost is RM15 per order and the supplier will deliver the order in 3 days. To overcome delivery uncertainties, the shop maintains a safety stock at a level of 5 days usage. Determine the company's Reorder Point (ROP) I of Answer 1.800 units 2,000 units

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter18: The Management Of Accounts Receivable And Inventories
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Federal Holdings consumes about 72,000 kg of flour per year. The company is open 360 days a year, The ordering cost is RM15 per order and the
supplier will deliver the order in 3 days. To overcome delivery uncertainties, the shop maintains a safety stock at a level of 5 days usage. Determine the
company's Reorder Point (ROP)
Answer
1800 units
B
2,000 units
1.600 units
02014 - 2022
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ENG
926 AM
US
2/22/2022
Transcribed Image Text:#4 Federal Holdings consumes about 72,000 kg of flour per year. The company is open 360 days a year, The ordering cost is RM15 per order and the supplier will deliver the order in 3 days. To overcome delivery uncertainties, the shop maintains a safety stock at a level of 5 days usage. Determine the company's Reorder Point (ROP) Answer 1800 units B 2,000 units 1.600 units 02014 - 2022 Chat With Us ENG 926 AM US 2/22/2022
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