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Home Depot procures a popular bathtub from its supplier at a cost of $929 per unit. The holding cost at Home Depot's distribution center (DC)
Home Depot procures a popular bathtub from its supplier at a cost of $929 per unit. The holding cost at Home Depot's distribution center (DC) is 19% of the purchase cost per unit per year. Weekly demand for the bathtub at the DC is normally distributed with a mean of 1,931 units per week and a standard deviation of 336 units per week. Home Depot would like to maintain a 93% cycle service level for this product. Suppose that Home Depot reviews its inventory continuously and that lead times for orders placed with the supplier are constant at 3 weeks. Compute the reorder point required to meet the desired service level. Rounding instructions: Carry calculations to at least 3 decimal places. Round your answer to the nearest tenth of a dollar (one decimal place)
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