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Annual demand for a product is 12,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an
Annual demand for a product is 12,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 90 percent customer service level, what must the reorder point be (approximately)?
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1000
1102
1080
1128
1140
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