Question: Consider a basic economic order quantity (EOQ) model with the following characteristics: Item cost: $25. Item selling price: $30. Weekly demand: 100 units (constant) Annual

Consider a basic economic order quantity (EOQ) model with the following characteristics: Item cost: $25. Item selling price: $30. Weekly demand: 100 units (constant) Annual holding cost: 12% of purchase cost Cost per order: $150. Order lead time: 3 days Firm's work year: 312 days (52 weeks @ 6 days per week) Safety stock: 10% of weekly demand The optimal Reorder Point, R* is

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