ST2 USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS: Company annually buys 600,000 units...
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ST2 USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS: Company annually buys 600,000 units of Part B. The EOQ is 12,000 units. The ABC Company's average usage equals 2.000 units/day (600,000 units/300 working days) and the average lead-time for ordering Part A is 6 days. 48. What is the reorder point with no variability in either usage or lead-time? a. 11,000 units b. 12,000 units c. 13,000 units d. 14,000 units 49. What is the level of safety stock if usage could be as high as 2.200 units/day? a. 1,200 units b. 1,000 units c. 800 units d. 600 units 50. What is the level of safety stock if lead-time could be as high as 9 days? a. 8,000 units b. 7,000 units c. 6,000 units d. 5,000 units
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