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Olga Company Has an Economic Order Quantity for Item B

Question 78

Multiple Choice

Olga Company has an economic order quantity for item B of 100 units. The annual demand for the product is 1,400 units, and the unit carrying cost per year is $7. The company operates 200 days a year, the lead time for the item is ten days, and the safety stock is 100 units.
What is the reorder point?


A) 70 units
B) 100 units
C) 1000 units
D) 170 units

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