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if average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is
if average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is
Thereorder pointrefers to the level at which new stock is ordered. Calculated by multiplying daily demand by lead time and adding safety stock, in this case it is 700 units.Reorder point is a predetermined level ofinventoryat which a new order should be placed to replenish the stock before it depletes completely. It's typically calculated as the product of daily demand and lead time, plus the safety stock.In this particular case, the average daily demand is 200 units, the lead time is three days, and the safety stock is 100 units. Therefore, the reorder point would becalculatedusing the formula: (Average daily demand * Lead time) + Safety stock.You can simply multiply the daily demand (200 units) by thelead time(3 days), which gives you 600 units. Then add the safety stock (100 units) to this result. So, the reorder point in this case is 600 + 100 = 700 units. When your inventory reaches this point, it's time to place a new order.Learn more aboutReorder Pointhere:brainly.com/question/33886505#SPJ11...