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Cress Electronic Products manufactures components used in the automotive industry

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Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers. One particular supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 5000 units, the ordering cost is $80 per order, and the annual holding cost rate is 25%.
b. Assume 250 days of operation per year. If the lead time for an order is 12 days, what is the reorder point?

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