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What is level of safety stock if lead-time could be as high

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Reference no: EM132741490

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 level of safety stock if lead-time could be as high as 10 days?

a. 6,000 units

b. 7,000 units

c. 8,000 units

d. 9,000 units

Reference no: EM132741490

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