Multiple Choice
American Supply Company has an economic order quantity for item A of 200 units.The annual demand for the product is 5,000 units, and the cost of placing an order is $8.If the company operates 200 days a year and the lead time for the item is five days, what is the reorder point if a safety stock of 50 units is maintained?
A) 4 days
B) 175 units
C) 25 units
D) 50 units
Correct Answer:
Verified
Correct Answer:
Verified
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