Olga Company Has an Economic Order Quantity for Item B

question 78

Multiple Choice

Olga Company has an economic order quantity for item B of 100 units. The annual demand for the product is 1,400 units, and the unit carrying cost per year is $7. The company operates 200 days a year, the lead time for the item is ten days, and the safety stock is 100 units.
What is the reorder point?

• A)70 units
• B)100 units
• C)1000 units
• D)170 units

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