The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its business The unit cost is 30 (cents). Placing an order costs $20 and annual carrying costs are $2/unit. The company operates 250 days per year and maintains a safety stock of 576 boxes. The lead time for an order of bones is 4 business days.
The reorder point, R, is:
a. 1,344 units
b. 768 units
c. 576 units
d. None of these
e. Cannot be determined from this information