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Question - An inventory item of XYZ Manufacturing has an average daily demand of 10 units with maximum daily demand of 12 units. The economic order quantity is 200 units. Without safety stocks, the reorder point is 50 units. Safety stocks are set at 94 units.
Required -
a. Determine the reorder point with safety stocks.
b. Determine the maximum inventory level.
c. Determine the average lead time.
d. Determine the maximum lead time.
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