What should the reorder point be

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Reference no: EM131734407

Annual demand for an item is 12,000 units. The holding cost rate is 20% of the item cost. Ordering costs are $8 per order. Quantity discounts are available according to the schedule below: Quantity Price per Unit ($) 1-99 130.00 100-299 128.00 300-399 127.00 400+ 126.25 Assume 52 5-day weeks per year. If the lead-time is 3 weeks, what should the reorder point be? If necessary, round your final answer UP to the nearest whole number.

Reference no: EM131734407

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