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Commerce · Q366

Costing

Graduate and Post Graduate · Commerce · question 366

Q366

If purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be

A.
14000 units
Answer
B.
14500 units
C.
15000 units
D.
15500 units

Answer: Option A

Solution

Answer: Option A
Solution:
Reorder point = Number of units sold × Purchase order lead time
= 400 × 35 = 14000 units