### Calculate reorder point

##### Reference no: EM1368980

Calculating reorder point

Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is \$100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is \$0.65 per unit. To provide a 98 percent service probability, what must the reorder point be?

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