Question: H&C assembles custom home computers. Annual demand is 5,200 units, the annual inventory cost rate is $3 per unit per year, and the cost to

H&C assembles custom home computers. Annual demand is 5,200 units, the annual inventory cost rate is $3 per unit per year, and the cost to place an order is estimated to be $50. Lead time is 2 weeks. Assuming 52 weeks in a year.

Average demand: 5,200 units Ordering cost: $50 Lead time: 2 weeks Unit Cost: $3

What is the reorder point for this plan?

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