Interval approach to managing his inventory of corn chip bag

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John uses a fixed order interval approach to managing his inventory of corn chip bags (i.e., John orders more bags on the 1st of each month). John doesn't know demand with certainty, but he usually ranges from 2000 to 4000 bags, so he keeps 4500 bags in stock. Last month John used 2350 bags. Using the periodic review (P) system, how many bags will John order this month?

Reference no: EM13904383

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