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Swann Company manufactures sleeping bags. A heavy-duty zipper is one part the company orders from an outside supplier. Information pertaining to the zipper is as follows:
Economic order quantity
4,200 units
Average daily usage
200 units
Maximum daily usage
240 units
Lead time
3 days
Required:
1. What is the reorder point assuming no safety stock is carried?
2. What is the reorder point assuming that safety stock is carried?
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