What is the appropriate reorder point


For a given inventory item, the appropriate risk of a stockout has been determined to be 12%. Demand for this item averages 20 units per week, with a standard deviation of 5.36 units. Lead time is a certain 3 weeks. What is the appropriate reorder point?

A. Not in excess of 68 units

B. In excess of 68 units but not in excess of 70 units

C. In excess of 70 units but not in excess of 72 units

D. In excess of 72 units but not in excess of 74 units

E. In excess of 74 units

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