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Spencer Industries annually buys 900,000 units of Part XY. The EOQ is 2,000 units. Spencer Industry's average usage equals 3,000 units/day (900,000 units/300 working days) and the average lead-time for ordering Part XY is 8 days.
Problem 1: What is the reorder point with no variability in either usage or lead-time?
a. 21,000 units
b. 22,000 units
c. 23,000 units
d. 24,000 units
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