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James Bond Pty Ltd uses 960 tonnes a particular chemical each year. Monthly usage fluctuates between 70 tonnes and 90 tonnes. The lead time for
James Bond Pty Ltd uses 960 tonnes a particular chemical each year. Monthly usage fluctuates between 70 tonnes and 90 tonnes. The lead time for each order is six weeks and the economic order quantity is 160 tonnes. The safety stock for Bond's chemical would be: A 10 tonnes. B. 20 tonnes. C. 30 tonnes. D. None of the given answers. The Wonderlust Retail Company Ltd experiences relatively constant demand of 24 000 units per year for one of its products. The product, a coffee-making machine, costs the firm $30, Placing an order costs $200 and annual carrying costs are $2 per unit. The firm works 200 days per year and desires a safety stock of 300 units. The lead time for an order is 15 working days. The economic order quantity for Wonderlust is: A. 1549. B. 3098. C. 2191. D. 2221
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