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Unformatted text preview: EOQ, reorder point, and safety stock Alexis Company uses 800 units of a product per year on a continuous a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate c. Determine the reorder point . d. Indicate which of the following variables change if the firm does not hold the ays to receive a shipment after an order is placed, s basis. and the firm wishes to hold 10 days’ usage in inventory as a safety stock....
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- Spring '11
- $2, $50, 10 days, 5 days