What is the reorder point


Problem:

Jon Batiste stocks and sells Colbert model airplanes that have a weekly demand of 50 airplanes. The standard deviation for weekly demand is 2 airplanes. The lead-time for receiving the airplanes from the manufacturer is 4 weeks. Using the continuous review system, what is the reorder point (ROP) including safety stock that Jon can use to decide when to place an order if he decides to have a 95 percent service level for which the z is 1.64? Select the closest number.

Group of answer choices

  • 207 airplanes
  • 10,407 airplanes
  • 193 airplanes
  • 568 airplanes

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Other Subject: What is the reorder point
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