The Jansen Company is setting up an inventory control system. For one type of material, the following data have been assembled:
Order quantity ....................................... 3,000 units
Minimum use per day .............................. 80 units
Normal use per day .............................. 120 units
Maximum use per day .............................. 200 units
Lead time ............................................ 12 days
Required:
Compute the following:
(1) Safety stock (maximum)
(2) Order point
(3) Normal maximum inventory
(4) Absolute maximum inventory