In a Reorder Point Problem Where Both Demand and Lead

Multiple Choice

In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. What should the reorder point be for a 95% service level?

A) 330 units
B) 201 units
C) 417 units
D) 1,617 units
E) 1,531 units