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 4 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? (chose the range below which contains the correct answer)

less than 4500

greater than or equal to 4500 but less than 5000

greater than or equal to 5000 but less than 5500

greater than or equal to 5500 but less than 6000

greater than or equal to 6000

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