Solution-What is the level of safety stock if usage could

What is the level of safety stock if usage could be as high

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Reference no: EM132755760

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 usage could be as high as 3,200 units/day?

a. 1,200 units

b. 1,400 units

c. 1,600 units

d. 1,800 units

Reference no: EM132755760

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What is the level of safety stock if usage could be as high

Reference no: EM132755760

Reference no: EM132755760

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