Cartwright Graphics uses a special purpose paper on 80% of its jobs. The paper is purchased in 100-sheet packages at a cost of $100 per package. Management estimates that the cost of placing and receiving a typical order is $15, and the annual cost of carrying a package in inventory is $1.50. Cartwright uses 2,600 packages each year. Production is constant, and the lead time to receive an order is 1 week. The reorder point is:

a) 24 packages

b) 50 packages

c) 203 packages

d) 225 packages

Answer rating: 100% (QA)

b 50 packages Lead time 7 days Average ... View the full answer