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Company C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company
Company C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company C&A $30 per order and $50 per bottle. Company C&As annual holding cost percentage is 40%. If the supplier take 5 weeks to deliver an order (i.e., lead-time is 5 weeks), what should be C&A's reorder point (i.e., the inventory level at which it places an order).
A) 3,000 bottles
B) 600 bottles
C) 300 bottles
D) 6,000 bottles
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