Calhoun Corporation's order quantity for Material T is 5,000 lbs. The company maintains a safety stock of T at 500 lbs., and its order point is 1,500 lbs. Refer to Calhoun Corporation. What is the lead time assuming daily usage is 50 lbs.?
a. 30 days
b. 100 days
c. 10 days
d. 20 days
D
Order point = (Daily use * Lead time) + Safety Stock
1,500 = (50 * LT) + 500
1,000 = (50 * LT)
20 = LT
You might also like to view...
The process costing system that computes equivalent units only on work done in the current period is known as a __________________________________________________
Fill in the blank(s) with correct word
African Americans will make up about 50 percent of the U.S. civilian workforce by the year 2018.
Answer the following statement true (T) or false (F)
Tangible benefits arising from project implementation using CIM principles include a shorter manufacturing cycle time, lower inventory, lower project reject rate, and increased customer satisfaction
Indicate whether the statement is true or false
The newest theory in social responsibility is called sustainability. Explain what this means.
What will be an ideal response?