Sages Scents uses specially designed and labelled bottles to package its line of natural shampoos and body washes. The following information is available to assist managers determine how many bottles to order and when to order.

Annual usage		446.34	cases
Cost to place an order (K)		$16
Cost to carry one unit (H)		$3
Daily usage		5	cases
Lead time		5	days
Price per case		$31.00

The supplier has offered a quantity discount option.

Quantity		Price per Case
1100 cases		$31.00
101250 cases		$29.30
2511,000 cases		$27.70
1,001 + cases		$26.40

(a)

Calculate the economic order quantity for Sages Scents current level of production.

Economic order quantity

69

(b)

Evaluate the quantity discounts offered by the supplier.

The lowest cost order size is

251

(c)

Determine the re-order point.

Re-order point

Type your answer here cases _______________

a and b are correct please solve c ( the re-order point)