Murphy Company uses 3,000 yards of material each day to make hats.It usually takes five days from the time Murphy orders the material to when it is received.If Murphy's desired safety stock is 6,000 yards,what is Murphy's order point?
A)6,000 yards
B)12,000 yards
C)15,000 yards
D)21,000 yards

Question

Quizplus · Accepted Answer

Murphy's order point is calculated by multiplying the daily usage (3,000 yards) by the lead time (5 days) and adding the safety stock (6,000 yards): (3,000 yards/day * 5 days) + 6,000 yards = 21,000 yards.

Murphy Company Uses 3,000 Yards of Material Each Day to Make