Problem D: Use the following to answer questions i-ii:

A firm distributes items through a centralized warehouse. Holding cost is $2, and ordering cost is $40. Demand for the product is 200 units per week. The lead time for the item is 1 week. (There are 52 weeks in a year).

i,) What is the economic order quantity using the simple EOQ model?

		A) 527
		B) 589
		C) 416
		D) 645
		E) 721

ii.) What is the reorder point?

		A) 200
		B) 300
		C) 600
		D) 500
		E) 400