M&C Corp. consumes 300,000 units of spare part V per year. The average purchase lead time is 20 working days while the maximum is 27 working days. The company’s annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The company would like to keep safety stock or extra stock to guard against stock-outs. How much is the safety stock?
M&C Corp. consumes 300,000 units of spare part V per year. The average purchase lead time is 20 working days while the maximum is 27 working days. The company’s annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The company would like to keep safety stock or extra stock to guard against stock-outs. How much is the safety stock?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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M&C Corp. consumes 300,000 units of spare part V per year. The average purchase lead time is 20 working days while the maximum is 27 working days. The company’s annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The company would like to keep safety stock or extra stock to guard against stock-outs. How much is the safety stock?
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