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Opthea sells optical equipment. Bitron manufactures special glass lenses. Opthea orders 11,400 lenses per year, 220 per week, at $40 per lens. Bitron covers all

Opthea sells optical equipment. Bitron manufactures special glass lenses. Opthea orders 11,400 lenses per year, 220 per week, at $40 per lens. Bitron covers all shipping costs. Opthea earns 22% on its cash investments. The purchase-order lead time is 3.0 weeks. Opthea sells 315 lenses per week. The following data are available:

Relevant ordering costs per purchase order $47.25

Relevant insurance, materials handling, breakage,

and so on, per year $5.50

What is the reorder point?

a.

1318 lenses

b.

660 lenses

c.

1605 lenses

d.

945 lense

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