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Walrus Company Has the Following Information Available Concerning One of Its

Question 51

Multiple Choice

Walrus Company has the following information available concerning one of its inventory items:  Cost of placing an or der $30.00 Unit carrying cost per year $3.00 Annual unit demand 6,625 Safety stock 125 Average daily demand 25 Normal lead time in days 10\begin{array} { l r } \text { Cost of placing an or der } & \$ 30.00 \\\text { Unit carrying cost per year } & \$ 3.00 \\\text { Annual unit demand } & 6,625 \\\text { Safety stock } & 125 \\\text { Average daily demand } & 25 \\\text { Normal lead time in days } & 10\end{array} If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?


A) 5 days
B) 31 days
C) 26 days
D) 110 days

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