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A toy manufacture uses aproximately 32000 silicon chips annually. The Chips are used at a steady rate during the 240 days a year that the

A toy manufacture uses aproximately 32000 silicon chips annually. The Chips are used at a steady rate during the 240 days a year that the plant operates. Annual holding cost is 60 cents per chip and ordering cost is 24$. A year has 288 days.
If the supplier has a lead time of 20 days,Which is the reorder point? Should we have a safety stock? To prevent what?

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