Figure 20 -2 Walrus Company has the following information available concerning one of its inventory items:
Refer to Figure 20-2. If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?
Definitions:
Plant Capacity
Plant capacity is the maximum output that a manufacturing facility can produce under normal conditions within a given time period.
Regular Time
The standard hours during which an organization operates or an employee is expected to work, excluding overtime.
Level Strategy
A business approach that maintains a steady production rate or workforce level, even in the face of fluctuating demand.
Machine Capacity
The maximum amount of work that a machine or system can complete in a given period.
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