Question: 5. Reorder Point Problem 800 Maximum level - 800 units 700 stock Units Held 600 SOO Led Time 400 Reorder Level - 400 units 300

5. Reorder Point Problem 800 Maximum level - 800 units 700 stock Units Held 600 SOO Led Time 400 Reorder Level - 400 units 300 200 Minimum -200 units 100 Buffer Srec 1 4 78 10 time (weeks 5a. 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) Sb. 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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