Johnson Corporation has the following information about a product that it carries in stock:
Average demand = 48 units per day
Average lead time = 10 days
Item unit cost = $61 for orders of less than 400 units
Item unit cost = $56 for orders of 400 units or more
Ordering cost = $37
Inventory carrying cost = 20%
The business year is 300 days
Standard deviation of demand = 3.1 units
Standard deviation of lead time = 2 days
Desired service level = 97.5%
1. What will the annual inventory turnover rate be for this item? (Round your answer to 1 decimal place.)
2. What will the reorder point be for the item?