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The Following Information Applies to Krynton Company,which Supplies Microscopes to Laboratories

Question 30

Multiple Choice

The following information applies to Krynton Company,which supplies microscopes to laboratories throughout the country.Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.  Annual demand (weekly demand =1/52 of annual demand)  52,000 units  Orders per year 20 Lead time in days 15 days  Cost of placing an order $100\begin{array}{lr}\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 52,000 \text { units } \\\text { Orders per year } & 20 \\\text { Lead time in days } & 15 \text { days } \\\text { Cost of placing an order } & \$ 100\end{array} What is the reorder point?


A) 1,040 units
B) 2,143 units
C) 1,580 units
D) 3,080 units

Correct Answer:

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