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Supermedicosupplies.com is an Internet supplier of medical equipment. One of its most profitable lines isthe ‘Thunderer' stethoscope. Demand for this product is 15,000 per year, the cost of holding the product isestimated to be £25 per year and the cost of placing an order £75.
How many stethoscopes should the company order at a time? Supermedicosupplies.com works a 44-week year. If the lead time between placing an order for stethoscopesand receiving them is two weeks, what is the re-order point for the Thunderer stethoscopes?
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