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You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

Demand = 25,000 units/year

Ordering cost = $33/order

Holding cost = $1/unit/year

Lead time = 4 days

Standard deviation in daily demand = 5 units

Service level = 95% (z=1.65)

What is the reorder point?

(Please round your calculations to the nearest whole number.)

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