Multiple Choice
A company has average demand of 30 units per day. Lead time from the supplier averages 7 days. Assume that the combined standard deviation of demand during lead time has been calculated and is equal to 20 units. One unit costs $10 and the inventory carrying cost is 25 percent. 
What is the reorder point for the company if it decides on a 99 percent service level?
A) 243 units
B) 257 units
C) 77 units
D) 210 units
Correct Answer:
Verified
Correct Answer:
Verified
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