What is the reorder point and what is inventory position

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ABC has a demand (which is deterministic) for 27,000 DVD’s per month. The cost of a DVD is $2.30 and the holding cost is 30 percent of the cost of the product per year. The ordering cost is $700 per order. There are 350 days per year. The lead time is 7 days.

a) What is the economic order quantity?

b) What is the reorder point and what is the inventory position immediately after the order is placed?

Reference no: EM132301359

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