Answer:
A. 3,767 units
Explanation:
Given that:
Annual demand (weekly demand = 1/52 of annual demand)
and 55,000 units Orders per year occcurs;
Then the reorder point can be calculated as:
Reorder point = [tex]\frac{55000}{52}[/tex]
= 1057.69 units/week
For the Daily Demand; we have:
= [tex]\frac{1057.69}7}[/tex]
= 151.10 Daily demand
Now, in 25 days ; we will have the reorder point = 151.0 Daily demand × 25 days
= 3777.5 units
which is approximately (≅) nearest to 3767 units
