What is the reorder point


Problem:

The annual demand for a product is 1,500 units. The company orders 250 units each time an order is placed. The lead-time is 15 days, and the company has determined that 100 units should be held as a safety stock. There are 250 working days per year.

Required:

Question: What is the reorder point?

Note: Solve the problem and show all work.

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Finance Basics: What is the reorder point
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