Answer:
1236.15
Step-by-step explanation:
Data provided
Daily demand (d) = 40 units
Standard deviation = 8 units
Lead time (L) = 30 days
The Service level of 95 percent z value = 1.65
The computation of the reorder point is shown below:-
Reorder point = demand during lead time + safety stock
[tex]= daily\ demand \times Lead\ time + z\times \sigma\times \sqrt{L}[/tex]
[tex]= 40 \times 30 + 1.65\times 4\times \sqrt{30}[/tex]
= 1236.149689
or
= 1236.15
Therefore the correct answer is 1236.15
