Noble Manufacturing produces a component used in its production of clothes dryers. The time to set up

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Noble Manufacturing produces a component used in its production of clothes dryers.

The time to set up and produce a batch of the components is two days. The average daily usage is 320 components, and the maximum daily usage is 375 components.

Required:

Compute the reorder point assuming that safety stock is carried by Noble Manufacturing.

How much safety stock is carried by Noble?

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Related Book For  book-img-for-question

Cost Management Accounting And Control

ISBN: 9780324233100

5th Edition

Authors: Don R. Hansen, Maryanne M. Mowen

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