Exhibit 20-4 The Hanover Catalog Company has the following information available concerning one of its inventory items:
Refer to Exhibit 20-4. If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?

Question

Exhibit 20-4 The Hanover Catalog Company has the following information available concerning one of its inventory items:
 Refer to Exhibit 20-4. If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?

Quizplus · Accepted Answer

The safety stock for this item is 500 units, which provides a buffer of 2 days (given that the daily demand is 250 units and the lead time is 2 days).

Exhibit 20-4 the Hanover Catalog Company Has the Following Information