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A product has variable demand and constant lead time. Currently this product is managed by a fixed-period inventory system, for which the review period is one week. Lead time is four weeks. Annually about 5,200 units of this product are sold. The current target inventory is 500 units. Today is review day; 75 units are on the shelves, and orders placed at previous reviews in the amount of 110, 60, and 30 have not yet been received. There are no backorders.
a. How much is the firm allowing for safety stock in this case?
b. What should be the order amount this week?
Clicking
The act of pressing and releasing a mouse button or similar device to select or interact with digital elements on a screen.
Conditioned Response
A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.
Salivation
The production and release of saliva in the mouth, often in response to the sight, smell, or taste of food.
Conditioned Response
A learned response to a previously neutral stimulus that has become conditioned through association.
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