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Albuquerque Company Has the Following Information Available Concerning One of Its

Question 96

Multiple Choice

Albuquerque Company has the following information available concerning one of its inventory items:  Cost of placing an or der $50.00 Unit carrying cost per year $2.00 Annual unit demand 3,200 Safety stock 80 Average daily demand 10 Normal lead time in days 12\begin{array} { l r } \text { Cost of placing an or der } & \$ 50.00 \\\text { Unit carrying cost per year } & \$ 2.00 \\\text { Annual unit demand } & 3,200 \\\text { Safety stock } & 80 \\\text { Average daily demand } & 10 \\\text { Normal lead time in days } & 12\end{array} If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?


A) 0.83 days
B) 8.00 days
C) 6.67 days
D) 40.00 days

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