Multiple Choice
Answer the following questions using the information below:
North Ryde Optics sells optical equipment.Vision Lenses manufactures special glass lenses.North Ryde Optics orders 10 400 lenses per year,200 per week at $20 per lens.Vision Lenses covers all shipping costs.North Ryde Optics earns 30% on its cash investments.The purchase-order lead time is 2.5 weeks.North Ryde Optics sells 250 lenses per week.The following data are available:
Relevant ordering costs per purchase order
Relevant insurance, materials handling, breakage,
and so on, per year
-What is the reorder point?
A) 415.5 lenses
B) 625 lenses
C) 397.5 lenses
D) 441 lenses
Correct Answer:

Verified
Correct Answer:
Verified
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