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In a Noninstantaneous Receipt Model, Daily Demand Is 55 Units

Question 32

Multiple Choice

In a noninstantaneous receipt model, daily demand is 55 units and daily production is 120 units, Co=$70 and Cc=$4 per unit per year. What is the maximum inventory level? (Assume that the facility is open 365 days per year.)


A) 616.9
B) 618.4
C) 620.3
D) 622.9

Correct Answer:

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