Annual demand for an item is 35000 units the holding cost


Annual demand for an item is 35,000 units. The holding cost rate is 15% of the item cost. Ordering costs are $25 per order. Quantity discounts are available according to the schedule below:

Quantity          Price per Unit ($)

1-99                 80.00

100-299           79.50

300-399           79.25

400+                79.00

Assume 52 5-day weeks per year. If the lead-time is 1 week, what should the reorder point be? If necessary, round your final answer UP to the nearest whole number.

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Operation Management: Annual demand for an item is 35000 units the holding cost
Reference No:- TGS01199747

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