An inventory item of XYZ Manufacturing has an average
daily demand of 10 units with a maximum daily demand of 12 units.
The economic order quantity is 200 units. Without safety stocks,
the reorder point is 50 units. Safety stocks are set at 94
units.
Required:
a. Determine the reorder point with safety stocks.
b. Determine the maximum inventory level.
c. Determine the average lead time. d. Determine the maximum lead
time
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