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Lola Graphics uses a special-purpose paper in most of its jobs. The cost of paper is $100 per package. Management estimates the cost of placing
Lola Graphics uses a special-purpose paper in most of its jobs. The cost of paper is $100 per package. Management estimates the cost of placing a typical order to be $15 and the annual cost of carrying a package in inventory is $1.50. The firm uses 6695 packages each year and production is constant all year. The lead time to receive an order is 2 weeks. Safety stock is 185 packages. Calculate the reorder point for paper (round your answer to the nearest whole number of packages).
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