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The annual demand for a product is 5,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days, and the company has determined that 25 units should be held as a safety stock. There are 250 working days per year. What is the reorder point?
6 units
20 units
145 units
120 units
Describe the objectives of failure mode and effect analysis, fault tree analysis, and value analysis. Why would this approach be applied?
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