(Appendix) LOrange Computer Systems acquires its keyboards to make micro computers from an external supplier. Management is...
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(Appendix) L’Orange Computer Systems acquires its keyboards to make micro¬ computers from an external supplier. Management is wondering what its safety stock should be and obtains the following information:
a. Calculate the cost of carrying the various safety stock sizes.
b. Calculate the cost of not carrying the various safety stock sizes.
c. Calculate the combined costs from parts a and b and identify the size of safety stock that results in the lowest combined cost.
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Muhammad Salman Alvi
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