Question: Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:

Peterson Enterprises uses a fixed order quantity
Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item: Demand = 50,000 units/year Ordering cost = $35/order Inventory-carrying cost as a percent of item value = 25% Item (Unit) value = $8 Lead time - 3 weeks Standard deviation in weekly demand - 125 units If Peterson wishes to provide a 97 percent cycle service level, what is the reorder point? 3133.5 4211.0 3211.3 3236.3

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