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A wholesaler is deciding how to order one of their best selling items. They operate 310 days a year, and demand for the item is
A wholesaler is deciding how to order one of their best selling items. They operate 310 days a year, and demand for the item is fairly uniform and consistent throughout the year. The wholesaler expects to sell 80,000 of these items in the coming year, and must pay $8.00 each for the item, regardless of how many they order each time. The company figures their inventory holding cost on this item is $0.75 per unit per year. Their cost accountants estimate that every order placed costs $125 in administrative overhead. Lead time from the manufacturer is known to be 4 days. Given this information, use the correct inventory ordering model to determine the correct reorder point. (Round your answer to the nearest integer.) O a. 242
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