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A newspaper publisher uses roughly 960 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is 4 workdays. What is the appropriate reorder point quantity, given that the company desires a service level of 95 percent, if that stockout risk for various levels of safety stock is as follows: 1,600 feet, .10; 1,700 feet, .05; 2,100 feet, .02; and 2,700 feet, .01?
Appropriate reorder point..............ft
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Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.
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