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Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie 689 solutions Accounting: What the Numbers Mean9th EditionDaniel F Viele, David H Marshall, Wayne W McManus 345 solutions What is a reorder point quizlet?Reorder point. the level of inventory at which a new order should be placed. Stockout. An inventory shortage. When the demand exceeds the available inventory in stock.
Which of the following is true regarding the fixedTerms in this set (15) Which of the following is TRUE regarding the fixed-quantity ordering system? The same fixed amount is added to inventory every time an order for an item is placed.
Which of the following statement is true for EOQ?Detailed Solution
The ordering quantity Q* at which holding cost becomes equal to ordering cost and the total inventory cost is minimum is known as Economic order Quantity (EOQ). if the total ordering quantity is less than the EOQ quantity, then the holding cost is less than the ordering quantity.
What is the formula to calculate the reorder point quizlet?The calculation for Q is = SQRT(2DS/H) where D is annual demand and S cost per order (setup cost). To calculate the reorder point you must calculate Dbar which tells you the amount of units used durig operting time in one day and then multiply this by the lead time.
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