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A Wholesaler Uses a Reorder Point of 70 Units

Question 136

True/False

A wholesaler uses a reorder point of 70 units. Its order lead time is 5 days, it holds no safety stock, and sells an average of 10 units per day. As long as an order is received within 6 days after it is placed, the firm will not run out of stock providing its usage rate is equal to or less than 10 units per day.

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