Author Question: Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision ... (Read 148 times)

dejastew · **on:** Mar 6, 2021

Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 220 per week, at $40 per lens. Blitz covers all shipping costs. Vision earns 22% on its cash investments. The purchase-order lead time is 3.0 weeks. Vision sells 315 lenses per week. The following data are available:

Relevant ordering costs per purchase order

$47.25

Relevant insurance, materials handling, breakage,

and so on, per year

$5.50

What is the reorder point?
◦ 660 lenses
◦ 945.0 lenses
◦ 1318 lenses
◦ 1605.0 lenses

kaykay69 · **Reply #1 on:** Mar 6, 2021

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