If a service level of 95 is desired during the reorder


Annual demand for an item is 9,000 units with the cost per unit at $150. The holding rate is 12% and the order cost is $18.00 per order. The standard deviation of daily demand is 5 units. Assume 265 days in the year and a lead-time of 3 days. If a service level of 95% is desired during the reorder interval, what is the reorder point? (Note: Due to rounding and your exact choice of z, your answer may be a few units off the choices given.) A. ~87 units B. ~99 units C. ~110 units D. ~116 units.

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Operation Management: If a service level of 95 is desired during the reorder
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