What is the optimal reorder point

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Reference no: EM132241183

Assume the following:

Fixed Ordering Cost: $100

Unit product cost to obtain: $2.00

Sell Price: $5.00

Annual holding cost: 30%

Weekly demand: 520 units

Weekly demand variance: 50 units

Leadtime: 4 days

Service level: 95%

What is the optimal reorder point, r?

Reference no: EM132241183

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