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The VP for Fite's Footballs has asked you to perform an audit of inventory levels for a different region. The inventory manager was recently terminated

The VP for Fite's Footballs has asked you to perform an audit of inventory levels for a different region. The inventory manager was recently terminated and you need to determine the appropriate safety stock for each item. Management has set the service level at 85%. Given the data below, what would the REORDER POINT be for the following item?

Price $100
Annual Demand 208,000 units
Cost per Order $200
Cost to hold the item per year 25%
Economic order quantity 1825
Lead Time 3 weeks
Standard Deviation of Forecasted Demand During Lead Time 300

choose the correct answer:

ROP = 9208

ROP = 6208

ROP = 8312

ROP = 12312

ROP = 9168

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