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Question - A repair garage has a demand for oil of 100 gallons per day with a standard deviation of 10 gallons per day. The lead time for oil is exactly 12 days causing the optimal safety stock to be 200 gallons. What is the reorder point for the oil using a reorder point model (R, Q model)?
a. 700 gallons
b. 920 gallons
c. 1,400 gallons
d. 1,200 gallons
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