Question: In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64,

In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. What should the reorder point be for a 95% service level?

A.

201 units

B.

1,617 units

C.

417 units

D.

1,531 units

E.

330 units

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