SOS uses 300,000 units of part X a year. Average purchase lead time is 20 working days while maximum is 27 working days. The firm’s annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The firm wants to keep safety stock to guard against stock outs. What is the safety stock in units?

SOS uses 300,000 units of part X a year. Average purchase lead time is 20 working days while maximum is 27 working days. The firm’s annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The firm wants to keep safety stock to guard against stock outs. What is the safety stock in units?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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