Judith Thompson, the manager of the student center cafeteria, has added pizza to the menu. The pizza

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Question:

Judith Thompson, the manager of the student center cafeteria, has added pizza to the menu. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates that weekly demand will be normally distributed with a mean weekly demand of 100 pizzas and standard distribution of 5 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost if $15 and the holding cost is $0.40 per pizza per year. The pizza vendor has indicated that the lead-time for supply deliveries is normally distributed with a mean lead-time of 4 days and a standard deviation of 1 day. Judith wants to maintain safety stock based upon a 95% level of service. What is the optimal reorder point (round to nearest unit)?

A. 88

B. 117

C. 54

D. 0

E. None of the above