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A store has collected the following information on one of its products:

Demand = 15,000 units/year

Standard deviation of weekly demand = 30 units

Ordering costs = $30/order

Holding costs = $4/unit/year

Cycle-service level = 95% (z for 95% = 1.65)

Lead-time = 2 weeks

Number of weeks per year = 50 weeks

If the firm uses the continuous review system to control the inventory, what would be the reorder point?

A) Less than or equal to 629

B) More than 629 but less than or equal to 669

C) More than 669 but less than or equal to 709

D) More than 709

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9793218

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