Question: Use the information below to answer the next 2 questions. A Retailer operates 300 days per year and uses continuous review inventory management. One of

Use the information below to answer the next 2 questions.

A Retailer operates 300 days per year and uses continuous review inventory management. One of its particularly popular items has a forecasted average daily demand of 25 units per day. The retailer purchases this item from a manufacturer that has an average order lead time of 5 days. Also, the retailer has determined their percent carrying cost to be 25%.

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Question 373 pts

The Supplier for this item has recently announced a change in transportation, which will cause a 2 day increase in lead times. What should the retailer do in response?

Group of answer choices

Increase the Reorder Point by 250 units

Increase the Reorder Point by 50 units

Reduce the Reorder Point by 50 units

Increase the Reorder Point by 100 units

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Question 383 pts

In addition to the 2-day increase in lead times, recent POS data suggests that the demand has decreased by 20%. Considering this, at how many units on-hand should the retailer now place an inventory reorder?

Group of answer choices

200 units

40 units

140 units

175 units

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