Answer: 15000 units
Explanation:
The reorder point= Average daily consumption x lead time
=1000units x 15 days
=15000 units
Reorder point is stock in hand which triggers to replenish the stock in the firm. If reorder point is calculated efficiently when the last of stock is just consumed the new inventory should have arrived. Lead time is the time taken to replenish the inventory by the supplier. the reorder point is based on the average daily usage in reality the supply and demand may vary on day to day basis.
