If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:

Reorder point =   700 units

Explanation:

Reorder point (ROP) is the minimum quantity OF inventory that a  business should have available in its stock  before the inventory is replenished or reordered .

Given

average demand for an inventory item =200 units per day

lead time = three days,

safety stock = 100 units

We have that  

Reorder point =  (Average daily unit sales x Lead time ) + Safety stock

=( 200 x 3 )+ 100

600 + 100

= 700 units