3. YOZECH Enterprise is frequently losing sales due to stock-outs. To avoid this problem,the owner likes to implement a new system of maintaining an inventory level whichwill include a safety stock. After looking into the past records of the company, it wasdetermined that the normal usage during the lead time of 12 days is 120 units whilethe maximum usage is 150 units for 15 days. Based on the given information, whatshould be the safety stock of YOZECH Enterprise?What is the ROP (Re-orderpoint)?

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the owner likes to implement a new system of maintaining an inventory level will include a safety stock. After looking into the past records of the company determined that the normal usage during the lead time of 12 days is 120 unit the maximum usage is 150 units for 15 days. Based on the given information should be the safety stock of YOZECH Enterprise? What is the ROP (R point)?

the owner likes to implement a new system of maintaining an inventory level will include a safety stock. After looking into the past records of the company determined that the normal usage during the lead time of 12 days is 120 unit the maximum usage is 150 units for 15 days. Based on the given information should be the safety stock of YOZECH Enterprise? What is the ROP (R point)?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter23: Other Topics In Working Capital Management

Section: Chapter Questions

Problem 7MC

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