Question
A company stocks an SKU with a weekly demand of 600 units and a lead time of 4 weeks. Management will tolerate one stockout per
A company stocks an SKU with a weekly demand of 600 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500 units, what is the safety stock, the average inventory, and the order point?
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Financial Accounting with International Financial Reporting Standards
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
4th edition
1119504309, 1-119-50340-8, 9781119503408 , 978-1119504306
