Homework Answers
Daily demand = Annual demand / Number of working days
= 25000 / 252 = 99.21
REORDER POINT = (DAILY DEMAND * LEAD TIME) + (Z * STANDARD DEVIATION * SQRT (LEAD TIME))
= ( 99.21 * 4) + ( 1.65 * 5 * SQRT(4))
= 413.33 or 413
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