Problem 3 (adapted) FQS Corporation makes available the following information relative to its Material G4. Annual demand
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Problem 3 (adapted) FQS Corporation makes available the following information relative to its Material G4.
Annual demand 30,000 units
Working days in a year 300 days
Normal lead time 12 days
Maximum lead time 19 days
Maximum usage per working day 125 units
Economic order size 6,000 units
Required:
1. Lead time quantity
2. Safety stock quantity
3. Reorder point
4. Average inventory
5. Maximum inventory
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