the reorder point is calculated as R = Ld, when the leadtime does not exceed the cycles length (time between orders, L < T*). However, a more difficult case is when the leadtime exceeds the cycles length (that is, L > T*).

a) How can the reorder point be calculated in this case? (Hint: give a specific formula. You may want to take a look at some inventory books).

b) Provide a numerical example to illustrate your answer.