The following information is available for Targaryen Corporation’s Material X Annual Usage 12,600 units Working days per year 360 days Normal Lead time 20 days The units of Material X are required evenly throughout the year Assuming that occasionally, the company experiences delay in the delivery of Material X, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain?
The following information is available for Targaryen Corporation’s Material X Annual Usage 12,600 units Working days per year 360 days Normal Lead time 20 days The units of Material X are required evenly throughout the year Assuming that occasionally, the company experiences delay in the delivery of Material X, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information is available for Targaryen Corporation’s Material X
Annual Usage 12,600 units
Working days per year 360 days
Normal Lead time 20 days
The units of Material X are required evenly throughout the year
Assuming that occasionally, the company experiences delay in the delivery of Material X, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain?
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