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Andrew and Fulton, Inc., uses 1,740 tons of a chemical bonding agent each year. Monthly demand fluctuates between 130 and 160 tons. The lead time
Andrew and Fulton, Inc., uses 1,740 tons of a chemical bonding agent each year. Monthly demand fluctuates between 130 and 160 tons. The lead time for each order is one month, and the economic order quantity is 290 tons. Required 1. Determine the safety stock appropriate for the chemical bonding agent. 2. At what order point, in terms of tons remaining in inventory, should Andrew and Fulton, Inc., order the bonding agent? 1. Safety stock 2. Reorder point tons tons
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