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What is the safety stock

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Reference no: EM133113366

Question - A company stocks an SKU with a weekly demand of 600 units and a lead time of 4 weeks. Management will tolerate one stock out per year. If sigma for the lead time is 100 and the order quantity is 2500 units, what is the safety stock, the average inventory, and the order point?

Reference no: EM133113366

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