Question: A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of

A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this item. Pertinent data about this item are as follows: Forecast of demand = 1,000 units per week Forecast error", std. dev. =100 units per week Lead time = 4 weeks Carrying cost = 25% per year Purchase price, delivered - $52 per unit Replenishment order cost = $20 per order Stockout cost = $10 per unit In-stock Probability during the lead time =85% Normally distributed Due to possible rounding effect, please pick the closest number in the following options. What is the reorder point? 4168 4256 4128 4208

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