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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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This note was uploaded on 04/22/2011 for the course FIN & ACC 504 & 502 taught by Professor Harper&tai during the Spring '11 term at Grand Canyon.
- Spring '11