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Annual Demand for Product G Is 117,000 Units and the Lead-Time

Question 31

Multiple Choice

Annual demand for product G is 117,000 units and the lead-time for orders is three weeks. Demand is steady throughout the year. Assuming that no buffer stock is held, at what level of inventory should the company re-order product G?


A) 58,500 units
B) 39,000 units
C) 6,750 units
D) 2,250 units

Correct Answer:

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