The Reddog Shirt Company predicts that 3,200 cases of zippers will be used during theyear to satisfy production needs.

The following additional information is known:

On average, 15 cases of zippers are used per production day. On average, it takes 9 days from the date an order is placed with a vendor to receipt of the

zippers. On average, the zippers cost $4 per case. Average cost to place an order with a vendor - $10. Average cost to receive and inspect an order from a vendor - $15. Average annual warehouse cost of holding one case of zippers in inventory. $0.80. Average annual interest rate 5% The purchasing manager has been asked to control the amount of material on hand (not too little, not toomuch). Given the information above and using the techniques learned in class:

At what point (what inventory quantity level) should the purchasing manager place an order forfabric? Reddog desires an 84.13% customer service level. Standard deviation of demand is 2 cases. Lead time is not variable.