What is the optimal amount of reorder point

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Reference no: EM133447605

Question: The Hastings Company is a nation-wide wholesaler for small electronic devices. One of its most popular items is a new GPS unit called the WAMI-1000. The company operates 365 days (52 weeks) in a year. Hastings has gathered the following information:

Average demand = 52,000 units/year

Standard deviation of yearly demand = 10,400 units

Average lead time = 5 weeks

Standard deviation of lead time= 1 week

Z (service level) =1.04

What is the optimal amount of reorder point for the company?

Reference no: EM133447605

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