The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?
Added by Michael P.
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Average Daily Usage = Annual Demand / Number of working days Average Daily Usage = 1000 / 250 Average Daily Usage = 4 units Show more…
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