Peter Pan suppliers sells cutlery sets and has an annual demand of 69 500 sets. The price per unit is R 580. Each set has a carrying cost of 10% of the price, and order costs amount to R130. Orders must be placed in round lots of 10. The delivery time is 5 days (assume Peter Pan suppliers does business for 50 weeks per year, 5 days per week). Peter Pan suppliers requires a safety stock inventory level of 120 cutlery sets. Which of the following is the correct method to calculate the amount of days at the re-ordering point is:
A. 50 x 7
B. 50 x 5
C. 50 x 4
D. 50 x 6
