Question: Demand for white percale sheets is 5,040 per year. The store is open 360 days per year. Every two weeks (14 days) inventory is counted

Demand for white percale sheets is 5,040 per year. The store is open 360 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 7 days for the sheets to be delivered. Standard deviation of demand for the sheets is 5 per day. There are currently 150 sheets on-hand.

What is the reorder point for this fixed order quantity system if they want to be sure with 95% confidence?

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