Question: The Demand for machine parts is steady and predictable at 9 8 6 units per year. The unit cost of the parts is $ 5

The Demand for machine parts is steady and predictable at 986 units per year. The unit cost of the parts is $580.The supplier charges a fixed cost of $538 per order to cover the costs of shutting down normal production to produce the requested parts. Our company estimates an opportunity cost for money at 10% per year. It also estimates that the floor space required to store a metal part costs $9 per year. If the replenishment lead time is 2 weeks, what is the reorder point, if the economic order quantity is 147. Assume 51 weeks per year.

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