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The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $35 per order, and the holding cost is 25 percent of the purchase cost. The purchase cost is $40 per unit. There are 200 working days per year. Currently, the company is ordering 500 units each time an order is placed (even though this may not necessarily be the EOQ). Assuming the company uses a safety stock of 60 units resulting in a reorder point of 120 units, what is the expected lead-time for delivery?

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