Burley Company Has the Following Information Available Concerning One of Its

question 65

Multiple Choice

Burley Company has the following information available concerning one of its inventory items:
$\begin{array}{lr}\text { Cost of placing an order}&\$ 50.00\\\text {Unit carrying cost per year }& \$ 2.00 \\\text { Annual unit demand}&3,200\\\text {Safety stock }&80\\\text {Average daily demand }&10\\\text {Normal lead time in days }&12\\\end{array}$

-Refer to the figure.What is the reorder point for the inventory item?

• A)200 units
• B)320 units
• C)500 units
• D)970 units