What is the reorder point during the reorder interval


Annual demand for an item is 9,000 units and the order cost is $4.00 per order. Holding cost is $11.25 per unit per year. The purchase cost of each unit is $225. The standard deviation of daily demand is 3 units. Assume 260 days in the year and a constant lead-time of 15 days. If a service level of 97% is desired during the reorder interval, what is the reorder point?

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Operation Management: What is the reorder point during the reorder interval
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