Shawgo Corporation Is Open 360 Days During the Year, and Has

question 220

Multiple Choice

Shawgo Corporation is open 360 days during the year, and has an annual demand of 170,000 units for its products. Its carrying cost per unit is $1.50, and its order costs are $250 per order. Additionally, the company wants to have 6 days' worth of sales in its inventory before it reorders. Given this information, calculate the company's reorder point.

• A) 2,833 units
• B) 2,933 units
• C) 3,033 units
• D) 3,133 units
• E) 3,233 units

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