Under a Q system to manage inventory, the EOQ is calculated to be 540 units...

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Under a Q system to manage inventory, • the EOQ is calculated to be 540 units • the safety stock to accomplish the desired service level is 10 units • the reorder point that already includes the above safety stock is 150 units • and the average order cycle is 2 days. You should place an order of 540 units whenever the inventory position drops below units. Under a Q system to manage inventory, • the EOQ is calculated to be 540 units • the safety stock to accomplish the desired service level is 10 units • the reorder point that already includes the above safety stock is 150 units • and the average order cycle is 2 days. You should place an order of 540 units whenever the inventory position drops below units.

Answer rating: 100% (QA)

To determine when to place an order under a Q system also known as a continuous review or reorder po... View the full answer