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The maintenance manager of a bearing manufacturer has asked you to calculate the reorder point...

The maintenance manager of a bearing manufacturer has asked you to calculate the reorder point of a spare part item. She has provided you with the following information to facilitate your calculations. The cost of the spare parties$100. The cost of earning inventory is 20% of the cost of the part. The cost of placing an order is$40 for which the annual demand is 100,000 units. The average tad-time for replenishment is two weeks and the buffer stock of 500 units S desired and the average inventory is 100 units per week. What is the reorder point in units for this spare part?

A.

350 units

B.

600 units

C.

700 units

D.

707 units

E.

1200 units

SMRP CMRP Summary

  • Vendor: SMRP
  • Product: CMRP
  • Update on: Dec 21, 2025
  • Questions: 148
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