Albuquerque Company has the following information available concerning one of its inventory items: $$\begin{array} { l r }
\text { Cost of placing an or der } & \$ 50.00 \
\text { Unit carrying cost per year } & \$ 2.00 \
\text { Annual unit demand } & 3,200 \
\text { Safety stock } & 80 \
\text { Average daily demand } & 10 \
\text { Normal lead time in days } & 12
\end{array}$$ 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)8.00 days
C)6.67 days
D)40.00 days

Question

Albuquerque Company has the following information available concerning one of its inventory items: $$\begin{array} { l r } 
\text { Cost of placing an or der } & \$ 50.00 \
\text { Unit carrying cost per year } & \$ 2.00 \
\text { Annual unit demand } & 3,200 \
\text { Safety stock } & 80 \
\text { Average daily demand } & 10 \
\text { Normal lead time in days } & 12
\end{array}$$ 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)8.00 days
C)6.67 days
D)40.00 days

Quizplus · Accepted Answer

The Answer of Albuquerque Company has the following information available concerning one of its inventory items: $$\begin{array} { l r } 
\text { Cost of placing an or der } & \$ 50.00 \
\text { Unit carrying cost per year } & \$ 2.00 \
\text { Annual unit demand } & 3,200 \
\text { Safety stock } & 80 \
\text { Average daily demand } & 10 \
\text { Normal lead time in days } & 12
\end{array}$$ 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)8.00 days
C)6.67 days
D)40.00 days

Albuquerque Company Has the Following Information Available Concerning One of Its