Question: PBtech Ltd . uses 1 , 5 6 0 tonnes of chemical each year in its manufacturing process. Monthly demand for the chemical fluctuates between

PBtech Ltd. uses 1,560 tonnes of chemical each year in its manufacturing process. Monthly demand for the chemical fluctuates between 100 and 160 tonnes. The lead time for each order is one month, and the EOQ is 260 tonnes.
Required:
(i) Determine the safety stock required for the chemical.
(ii) Calculate the reorder point in tonnes for the chemical.

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