How is the stock reorder point calculated?
Multiply the daily usage by the average number of days needed for new stock to be delivered. Add to this any amount of safety stock desired to ensure you will not run out of stock. This amount is the reorder point.
You might also like to view...
Goals of ERP include all of the following except
a. improved customer service b. improvements of legacy systems c. reduced production time d. increased production
When evaluating field workers, the interviewer's time should be broken down into actual interviewing, travel, and administration
Indicate whether the statement is true or false
The weighted-average contribution margin is computed by multiplying each product's unit contribution margin by the sales mix percentage of each product
Indicate whether the statement is true or false
Under what circumstances is a contingent liability reflected in the accounting records as though an actual liability exists?