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Spencer Industries annually buys 900,000 units of Part XY. The EOQ is 2,000 units. Spencer Industry's average usage equals 3,000 units/day (900,000 units/300 working days)

Spencer Industries annually buys 900,000 units of Part XY. The EOQ is 2,000 units. Spencer Industry's average usage equals 3,000 units/day (900,000 units/300 working days) and the average lead-time for ordering Part XY is 8 days.

43. What is the level of safety stock if usage could be as high as 3,200 units/day?

a.1,200 units

b.1,400 units

c.1,600 units

d.1,800 units

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