K-pro automotive shop purchases 120000 oil filters annually, Ask an Expert

Management Studies

Q. K-Pro Automotive Shop purchases 120,000 oil filters annually which are sold at an average of 400 per day over course of a year at its national retail outlets. If annual holding cost is fifty cents per filter also ordering cost is $75 per order, what is reorder point? (Assume 300 days in a year also a lead time of 4 days).

A 15 filters
B 400 filters
C 1600 filters
D 6000 filters

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9315293

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