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Required inventory levels are based on projected daily sales times the number of shipping days required for delivery from the supplier to Ted's warehouse. A
Required inventory levels are based on projected daily sales times the number of shipping days required for delivery from the supplier to Ted's warehouse. A longer delivery time requires Ted to maintain a higher level of inventory. Thus, he wants to include inventory carrying costs in the analysis. Ted maintains average inventory (units) based on 150 percent of projected daily sales multiplied by the number of shipping days from the supplier. The average inventory value equals the per unit deliv
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