Walrus Company Has the Following Information Available Concerning One of Its

question 77

Multiple Choice

Walrus Company has the following information available concerning one of its inventory items: $$\begin{array} { l r } \text { Cost of placing an or der } & \$ 30.00 \\\text { Unit carrying cost per year } & \$ 3.00 \\\text { Annual unit demand } & 6,625 \\\text { Safety stock } & 125 \\\text { Average daily demand } & 25 \\\text { Normal lead time in days } & 10\end{array}$$ The reorder point for the inventory item is

• A)275 units.
• B)375 units.
• C)625 units.
• D)1,525 units.

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