EOQ: What is the reorder point for risk of being out of stock? What is safety stock?
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54,000 units per year at $8 per unit
360 day-per year basis
$90 cost to place a single order
$3 to carry on unit in inventory one year
lead-time % of occurrence
6 75
7 10
8 5
9 5
10 5
Company willing to assume 15% risk of being out of stock
what is the safety stock...what is the reorder point
Company willing to assume 5% risk of being out of stock
what is the safety stock ....what is the reorder point
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The solution shows all the calculations needed and solves the problems with extra explanation.
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Posting ID: 40717 Mathematics, Other Other Spot ...
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