AAC – Solution: Reorder Point and Total Cost
{"Image DocumentName": "AAC \u2013 Solution: Reorder Point and Total Cost", "Image ImageDescription": "Under the current ordering policy AAC holds 13 units safety stock (how come? ): AAC is open 5 day a week. The average daily demand = (120/week)/5 = 24 juicers/day. Lead time is 8 days. Lead time demand is (8)(24) = 192 juicers. Reorder point without Safety stock = LD = 192. Current policy: R = 205. Safety stock = 205 \u2013 192 = 13. For safety stock of 13 juicers the total cost is. TC(327) = ( 10) + (13)( 1.40) =  62, TV(327) + Procurement + Safety stock cost holding cost.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}