What is the reorder point assuming that safety stock carried

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Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap is as follows:

Economic order quantity 6,300 units
Average daily usage 315 units
Maximum daily usage 375 units
Lead time 4 days

Required:

Problem 1. What is the reorder point assuming no safety stock is carried?

Problem 2. What is the reorder point assuming that safety stock is carried?

Reference no: EM132666231

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