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What is the reorder point

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The local office supply store sells 600 reams of printer paper each year at a price of $2 per ream. It costs them $3 to order more paper and it costs $1 per ream to store the paper. The store operates 300 days per year, and an order takes 3 days to arrive. How many reams of paper should be in each order (i.e. the EOQ)? What is the REORDER POINT at which they should place new orders?

Reference no: EM132091593

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