The Annual Demand for a Product Is 1,000 Units

question 72

Multiple Choice

The annual demand for a product is 1,000 units.The company orders 200 units each time an order is placed.The lead-time is 6 days.There are 250 working days per year.If the reorder point is 50,what safety stock are they using?

• A)22
• B)4
• C)26
• D)28
• E)None of the above

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Definitions:

UETA

The Uniform Electronic Transactions Act, which establishes legal recognition for electronic signatures and records in commercial transactions.

Electronic Transactions

Deals or exchanges of goods, services, or information conducted over electronic systems such as the internet.

Online Contracts

Agreements made and signed in an electronic format, using the internet, which are legally binding as traditional paper contracts.

E-Signatures

Digital or electronic symbols attached to an electronic document, used by a person with the intention to sign the document.