The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year). Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case.
-If the daily demand is 10 and the lead time in days is 8, what is the reorder point?
A) 60
B) 70
C) 80
D) 90

Question

Quizplus · Accepted Answer

The reorder point is calculated as the daily demand multiplied by the lead time. Given that the daily demand is 10 and the lead time is 8 days, the reorder point is 10 cases/day * 8 days = 80 cases.

The Manager of the Quick Stop Corner Convenience Store (Which