Question

1. Reorder Point - Select two different products from your household or work. Explain the following:

1. How the lot size is determined for the product.

2. What ordering method used for the product.  

3. Comment on whether or not the current lot size and ordering method are appropriate given the information from this course. If something different would be recommended, make a recommendation.

Answer 1

For this assessment, I select a table ( as in furniture) and chocolates as two different products from my household.

The lot size for furniture gets determined as per the requirement in the household. Usually, people purchase a single table in a lot for or their households.

When we talk about chocolates, lot size is determined based on the price or discount, frequency of consumption, or any other benefit for the consumer, like the ease in carrying or consumption.

I purchase chocolates with a lot containing six chocolate bars because it gets consumed frequently, and we get a discount when we purchase a lot of 6.

The ordering method I used for the purchase of chocolate is usually through the internet because it is a very cheap product and is standardized, and there is no need to go and check about the suitability.

Usually, we purchase furniture offline, from retail outlets, after checking the comfort and suitability, and prefer to pay through the bank account, because it is a product with a high unit price.

The current lot size and ordering method are appropriate given the information from this course, and as such, no recommendation is required.