Question: An electronics distributor uses a continuous review (Q) system for a popular product, the MicroTabletZ (MTZ). The MTZ has an average demand of 500 units

An electronics distributor uses a continuous review (Q) system for a popular product, the MicroTabletZ (MTZ). The MTZ has an average demand of 500 units per week. The standard deviation of weekly demand is 100 units. The average lead time is 5 weeks. The standard deviation of the lead time is 2 weeks. They would like to maintain a 98 percent cycle-service level. What is the Reorder Point for the item?

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