Question
Reorder point: The university bookstore wants to determine the size of the notebook orders. It observes a weekly demand of 120 notebooks with a standard
"Reorder point: The university bookstore wants to determine the size of the notebook orders. It observes a weekly demand of 120 notebooks with a standard deviation of 30 notebooks. The cost of placing an order is $200 per unit, and the lead time is 3 weeks. The procurement cost (wholesale price) of the product is $20 per unit. The annual inventory holding cost is 10% of the procurement cost of the product. What is the reorder point if it wants to achieve a stockout probability of 2%? Assume the store is open for 40 weeks in a year (Do not round your intermediate calculations. Round your final answers to the nearest whole number. Only enter the number. Do not enter any units."
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