Question: Docks Unlimited uses a Q - model to make inventory decisions about a replacement part for a stainless steel hinge. Annual demand is stable and

Docks Unlimited uses a Q-model to make inventory decisions about a replacement part for a stainless steel hinge. Annual demand is stable and has been forecast to be 3600 units, while it costs $4 to hold unit for a year and $200 to place an order. The order lead time is 4 days and the business operates 300 days per year. The standard deviation of daily demand is 10. To achieve a 98% service level, which of the following responses is closest to the appropriate re-order point?
198
7
14,433
89
 Docks Unlimited uses a Q-model to make inventory decisions about a

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