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Compute the safety stock in units

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Reference no: EM132885021

Problem 1: OML Company uses 300,000 units of part X a year. The average purchase lead time is 20 working days and the maximum is 27 working days. The company's annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The firm wants to keep safety stock to guard against stock outs. Compute the safety stock in units.

Reference no: EM132885021

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