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A company operating under a continuous review system has an average demand of 5 0 units per week for the item it produces. The standard

A company operating under a continuous review system has an average demand of 50
units per week for the item it produces. The standard deviation in weekly demand is 20
units. The lead-time for the item is six weeks, and it costs the company $30 to process
each order. The holding cost for each unit is $10 per year. The company operates 52
weeks per year. What is the reorder point if the company decides to implement a 95 percent cycle-service level

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