=+3 Although the Brisbanes average monthly demand is 2200 hats (26400 12 months), demand each month
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=+3 Although the Brisbane’s average monthly demand is 2200 hats (26400 ÷ 12 months), demand each month may vary from the average by up to 30%. To handle the variation in demand, Stentson has decided that the Brisbane warehouse should maintain enough safety stock to cover any demand level. How much safety stock should the Brisbane warehouse hold? How will this affect the reorder point and reorder quantity?
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