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Burley Company Has the Following Information Available Concerning One of Its

Question 22

Multiple Choice

Burley Company has the following information available concerning one of its inventory items:
 Cost of placing an order$50.00Unit carrying cost per year $2.00 Annual unit demand3,200Safety stock 80Average daily demand 10Normal lead time in days 12\begin{array}{lr}\text { Cost of placing an order}&\$ 50.00\\\text {Unit carrying cost per year }& \$ 2.00 \\\text { Annual unit demand}&3,200\\\text {Safety stock }&80\\\text {Average daily demand }&10\\\text {Normal lead time in days }&12\\\end{array}

-Refer to the figure.If there is a delay in shipping the item,approximately how many days can be covered by the safety stock?


A) 0.83 days
B) 6.67 days
C) 8.00 days
D) 40 days

Correct Answer:

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