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Albuquerque Company Has the Following Information Available Concerning One of Its

Question 40

Multiple Choice

Albuquerque Company has the following information available concerning one of its inventory items:  Cost of placing an or der $50.00 Unit carrying cost per year $2.00 Annual unit demand 3,200 Safety stock 80 Average daily demand 10 Normal lead time in days 12\begin{array} { l r } \text { Cost of placing an or der } & \$ 50.00 \\\text { Unit carrying cost per year } & \$ 2.00 \\\text { Annual unit demand } & 3,200 \\\text { Safety stock } & 80 \\\text { Average daily demand } & 10 \\\text { Normal lead time in days } & 12\end{array} The reorder point for the inventory item is


A) 500 units.
B) 970 units.
C) 320 units.
D) 200 units.

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