Refer to the data in PE 20-8. The supplier may take five days to deliver the inventory
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Refer to the data in PE 20-8. The supplier may take five days to deliver the inventory if any unexpected event occurs, and the daily demand for inventory may also spike to 160 units.
Compute the amount of safety stock the company should keep on hand in case both of these events should happen.
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Safety stock is 280 units as shown below Maximum lead time ...View the full answer
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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