Question: Help please BooksRUs operates 50 weeks per year and uses a continuous review inventory system. It purchase a popular book for $12 per unit from

Help please

Help please BooksRUs operates 50 weeks per year and uses a continuous

BooksRUs operates 50 weeks per year and uses a continuous review inventory system. It purchase a popular book for $12 per unit from a publisher. The following information is available about the book. Refer to the standard normal table at bottom of this page. . Average demand = 85 books/week . Standard deviation of weekly demand = 9 books . Order cost = $30/order . Annual holding cost = 25 percent of the unit cost . Desired cycle-service level=95.25 percent . Average lead time = 4 weeks . Standard deviation of lead time = 3 weeks . Current on-hand inventory is 300 books, with no open orders or backorders. What should be the reorder point (ROP)? (Enter your response rounded to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!