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The I - 7 5 Carpet Discount Store sells Super Shag carpet with an average daily customer demand of 3 0 yards and a standard
The I Carpet Discount Store sells Super Shag carpet with an average daily customer demand of yards and a standard deviation of yards. The lead time for receiving a new order is days. The store aims for a service level of with a probability of stockout. What is the primary purpose of calculating the reorder point and safety stock in this scenario? ptsA To estimate the average daily demand for Super Shag carpetB To minimize the lead time for receiving new carpet ordersC To determine the maximum order quantity for each shipmentD To ensure a sufficient inventory level to meet customer demand during the lead timeE To evaluate the effectiveness of the store's discount strategy
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