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Question
If the daily usages rate ranges between 60 units and 110 units with an average value of 90 units / day and if the lead time varies between 45 days and 75 days, the safety stock in units would be __________.
If the daily usages rate ranges between 60 units and 110 units with an average value of 90 units / day and if the lead time varies between 45 days and 75 days, the safety stock in units would be __________.
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Solution
The correct option is A 2850
Safety stock = (maximum daily usage X maximum lead time) - (average daily usage X average lead time) = (110 X 75) -(90 X 60).
Safety stock = (maximum daily usage X maximum lead time) - (average daily usage X average lead time) = (110 X 75) -(90 X 60).
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