Question: For a given product, the order quantity is 800 units, the monthly demand is 500 units, the average lead time is 4 months, and the

For a given product, the order quantity is 800 units, the monthly demand is 500 units, the average lead time is 4 months, and the safety stock is 800 units. What is the average inventory level for this product? This is a reorder point model (R, Q model) type problem. Select the closest answer.

		1,000 units
		900 units
		1,400 units
		2,800 units

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