Question: The following demand for the next 12 months has been provided for the sale of our produce. The lead time for the assembly of the product is two weeks. The desired service level is 95%.

Month Demand Month Demand

Jan 205 Jul 197

Feb 200 Aug 207

Mar 195 Sep 217

Apr 203 Oct 218

May 198 Nov 217

Jun 201 Dec 215

a. Calculate the reorder point.

b. Comment on your answer.