Question: A company operating under a continuous review (Q) system has an average demand of 68 units per week for an item. It costs the company

A company operating under a continuous review (Q) system has an average demand of 68 units per week for an item. It costs the company $80 to process each order. The standard deviation of demand over the 6 week lead time is 25 units. The holding cost is $10 per unit per year. The company operates 52 weeks per year and has a policy of maintaining a 90 percent cycle-service level. What is the Reorder Point for the item? (choose the range below which contains the correct answer)

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