Question: Based on the following information and a replenishment inventory system, what is the appropriate order point for item XYZ assuming there are 4 weeks per
Based on the following information and a replenishment inventory system, what is the appropriate order point for item XYZ assuming there are 4 weeks per month?
Annual demand for item XYZ is forecasted to be 22,000 units
The normal lead time is 3 weeks
The company wishes to keep a safety stock of one month (4 weeks) of forecasted demand
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