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A woodshop orders redwood slabs from a lumber yard. It costs $ 5 0 0 to place an order ( irrespective of the number of

A woodshop orders redwood slabs from a lumber yard. It costs $500 to place an order (irrespective of the number of slabs ordered). The woodshop needs 200 redwood slabs per month to satisfy their clients' needs. The woodshop buys slabs from the lumber yard for $1,900/unit and annual holding costs are 4.5% of the cost of a slab. The woodshop does not "believe" in carrying safety stock. The woodshop's standard deviation of monthly demand is 25. The lumber yard's delivery lead time is 0.25 months. What should the woodshop's reorder point be (with their existing safety stock policy)?

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