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Botak Manufacturing Company estimates that it will consume 400,000 units of part 101 in the coming year. The ordering cost for this unit is P3.20.

Botak Manufacturing Company estimates that it will consume 400,000 units of part 101 in the coming year. The ordering cost for this unit is P3.20. Botak wants to maintain a safety stock of 1,000 units and its factory operates 200 days per year.

What is the order point if the lead time is 2 days?

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