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Daily demand for a 60 LED TV is 33 TVs/day with a standard deviation of 3.5/day. Each TV costs $600/TV. Each order costs $1000/order
Daily demand for a 60" LED TV is 33 TVs/day with a standard deviation of 3.5/day. Each TV costs $600/TV. Each order costs $1000/order with a annual holding cost of $10/TV. Desired service level is 99% and lead time is a constant 4 days. What is the optimal reorder point? Round your answer to the nearest whole number and do NOT include units.
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