Answer:1200 Units
Explanation:
The reorder point= Average daily consumption x lead time
=240 units x 5 days
=1200 units
Reorder point for Barbara’s boutique shop for hair spray bottles is 1200 units. Reorder point is the point when the owner needs to place order for new inventory to keep the firm stocked during all the time. However in reality this might not be applicable due to external factors which affect the business demand and supply.
