Use the data below to answer the question below. Average daily demand 325 cases per day Standard deviation of daily demand 95 cases per day 2 days Average Lead Time Inventory holding cost Purchase Price Order Cost Stockout Cost Desired Service Level 20% of the item's value per year $50 per case $10 per order $35 per case 80% Assume the company operates 365 days per year You look back at historical data and find that lead time is not constant but is variable with an average of 2 days. What should the reorder point be set at to meet the desired service level if the standard deviation of lead time was found to be 0.5 days and the z-score for a service level of 80% is 0.84?

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