Use This Information to Answer the Following Questions

question 25

Multiple Choice

Use this information to answer the following questions.
A bakery buys sugar in 15-pound bags.The bakery uses 5000 bags of sugar each year.Carrying costs are $20 per bag per year.Ordering costs are estimated at $5 per order.Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags.It takes 5 days for each order of sugar to be filled.
-Refer to the information above.What is the Reorder point (ROP) ?

• A)20
• B)100
• C)5
• D)500
• E)15