Question: 5. Reorder Point Problem 800 700 Maximum level -100 units stock Units Held 600 SOO Lead Theme 400 300 Reorder level 400 units 200 100

5. Reorder Point Problem 800 700 Maximum level -100 units stock Units Held 600 SOO Lead Theme 400 300 Reorder level 400 units 200 100 Minimum 200 units w STOR 7 8 10 4 Time (Weeks) Sa. What is the reorder point (ROP), safety stock, and the Order Quantity for the example above? (Note: do not need to calculate EOQ)? (5 pts) 5b. Given the example above, management decides to reduce safety (buffer) stock to zero thus allowing maximum level to drop. What is the new 1) ROP, 2) the amount that is ordered, and 3) overall inventory levels? (5 pts)

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