Question: GVTech Enterprises operate on a continuous review inventory control system for one of its SKUs and manages inventory over a 4 8 week business year.

GVTech Enterprises operate on a continuous review inventory control system for one of its SKUs and manages inventory over a 48 week business year. The following details are provided for this item:
Annual demand: 60,000 units
Ordering cost: $50.00 per order
Holding cost: $4.00 per unit per year
Average lead time: 1 week
Standard deviation of weekly demand: 175 units
Determine the Reorder Point (ROP) needed to maintain a 92% service level, rounding to the nearest whole number.
GVTech Enterprises operate on a continuous review

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