Valentino & Oaks Footwear sells 100 units of one of a famous brand daily. The supplier takes two days to deliver more, and they want to have a safety stock of three day's sales.

At what quantity should the inventory manager place his/her next order?

PLEASE TELL ME THAT SOMEONE KNOWS REORDER POINTS

In inventory management, the reorder point is the inventory level, where a business needs to issue a purchase order for more stocks. The reorder point is influenced by delivery time, desired safety stock, and the average daily sales.

The formula for calculating the reorder point is as follows.

Reorder point = ( average daily sales x delivery lead time) + safety stock

In this case,

Reorder point = (100 x 2) + (100 x3)

= 200 +300

=500 units

Valentino & Oaks Footwear sells 100 units of one of a famous brand daily. The supplier takes two days to deliver more, and they want to have a safety stock of three day's sales.At what quantity should the inventory manager place his/her next order? PLEASE TELL ME THAT SOMEONE KNOWS REORDER POINTS

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