Question

Jill's Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require two months' lead time. Jill desires to maintain a safety stock of sufficient material to meet one month's demand. What is Jill's reorder point? a. 3,000 b. 6,000 c. 9,000 d. 12,000

          Jill's Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require two months' lead time. Jill desires to maintain a safety stock of sufficient material to meet one month's demand. What is Jill's reorder point?
a. 3,000
b. 6,000
c. 9,000
d. 12,000

Added by Erica W.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Aya Bianca Into

03/17/2022

Step 1

Given that Jill sells 12,000 bags per year and they are sold evenly throughout the year, we can calculate the average unit sales per month by dividing 12,000 by 12. Average unit sales per month = 12,000 / 12 = 1,000 bags Show more…

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Jill's Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require two months' lead time. Jill desires to maintain a safety stock of sufficient material to meet one month's demand. What is Jill's reorder point? a. 3,000 b. 6,000 c. 9,000 d. 12,000