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How much safety stock should they consider

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Wang Cooling has an annual demand for its best air conditioner of 1,500 units. They operate 300 days per year. The supplier is a way off, so it takes 10 days to get an order. Because of this, they accept a rather low service level of 84%. Standard deviation of demand during lead time is 6 units.

How much safety stock should they consider?

What is the Reorder Point?

Reference no: EM132398550

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