Answer:
the reorder point is 10,200 cases
Explanation:
The computation of the reorder point is shown below
Reorder Point (ROP) = Average demand during lead time + Safety stock.
where,
Average demand during lead time
= d × L
= 250 × 40
= 10,000 cases
And,
Safety Stock = 200 units
So,
ROP is
= 10,000 + 200
= 10,200 cases
hence, the reorder point is 10,200 cases