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Possible supply disruption

LD

Louis Devries Board Member, Operations

Fri, $8$:$38$ pm

Shania,

One of our suppliers $($TSX Innovations$)$ just contacted me about the possibility of slower production next year due to some supply chain difficulties on their end. We rely on a component made by TSX to produce Alan. Last year, our average daily use of this component was $6\mathrm{.}82$ and the average delivery lead time was $30$ days per component. I would like to retain at least $273$ units of the TSX component as safety stock. What reorder point should we set for the TSX components?

Louis

Louis Devries

Board Member, Operations $|$ Andrews Corporation

$546$ units

$512$ units

$478$ units

$409$ units

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