Compute the reorder point when daily demand is 25 units,orders are placed every 15 days,the lead time is 10 days,the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean) ,50 units are on hand and the standard deviation of daily demand during the uncertainty period is 10 units.
A) 525 units
B) 678 units
C) 362 units
D) 475 units
Correct Answer:
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