Question: the following data for a continuous review inventory system: annual demand: 3000; fixed cost of placing an order: $90; monthly holding cost: $2/per item; and

the following data for a continuous review inventory system: annual demand: 3000; fixed cost of placing an order: $90; monthly holding cost: $2/per item; and variable purchasing cost: $7 per item. If the lead-time for replenishment is 11 days then what is the optimal reorder point?

A)110

B)504

C)1800

D)90.41

E. None of the provided answers

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