What is the reorder point for diaper company

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A diaper company estimates that its demand is behaving normally, with an average of 300 units sold per day and a standard deviation of 80 units. The cost of keeping the product in the warehouse is US $ 0.3 per unit per year, while the cost of launching an order for restocking is US $ 20. It takes 5 days for the supplier to deliver the requested order. The distributor manager has chosen to use a 30-day periodic inventory control model, wanting to maintain a service level of 92% (Z = 1.41) and knowing that they work 52 weeks a year 5.5 days a year week.

Problem 1: The reorder point is

Reference no: EM132944351

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