If the firm employs the continuous review system to control

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Reference no: EM13394688

A store has collected the following information on one of its products:

Demand = 15,000 units/year
Standard deviation of weekly demand = 30 units
Ordering costs = $30/order
Holding costs = $4/unit/year
Cycle-service level = 95% (z for 95% = 1.65)
Lead-time = 2 weeks
Number of weeks per year = 50 weeks

If the firm uses the continuous review system to control the inventory, what would be the reorder point?

A) Less than or equal to 629
B) More than 629 but less than or equal to 669
C) More than 669 but less than or equal to 709
D) More than 709

Reference no: EM13394688

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