The Manager of the Quick Stop Corner Convenience Store (Which

question 45

Multiple Choice

The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year) . Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case.
-If the daily demand is 50 and the lead time in days is 4, what is the reorder point?

• A) 200
• B) 220
• C) 240
• D) 260

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