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What level of inventory should the business reorder

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Reference no: EM132963063

Problem 1: Polik Limited sells exercise bands for $55, and expects the demand for this product to be constant at 76 units per week. The exercise bands are ordered from a supplier at a price of $39, and each order takes three weeks to supply the product from the date that Polik Limited places an order. The business holds 120 units of the product as a safety buffer at all times. The cost of capital is 10%. At what level of inventory (in units) should the business reorder the exercise bands?

Reference no: EM132963063

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