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The Annual Demand for a Product Has Been Projected at 2,000

question 36

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The annual demand for a product has been projected at 2,000 units.This demand is assumed to be constant throughout the year.The ordering cost is $20 per order,and the holding cost is 20 percent of the purchase cost.The purchase cost is $40 per unit.There are 250 working days per year.Whenever an order is placed,it is known that the entire order will arrive on a truck in 6 days.Currently,the company is ordering 500 units each time an order is placed.What level of safety stock would give a reorder point of 60 units?


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Countersignature

An additional signature required on a document, serving as a verification or approval of the primary signature.

Designated Date

A Designated Date is a specific date set for a particular event or action to take place.

Stop Payment Order

A request made to a bank by an account holder not to pay or cancel payment on a check or pre-authorized electronic payment that has not yet been processed.

Payee Name

Payee Name is the name of the individual or entity entitled to receive payment on a financial document, such as a check or transfer.

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