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