Annual demand for product W is 120,000 units and the lead-time for orders is four weeks. Demand is steady throughout the year. Assuming no buffer stock is held, at what level of inventory should the company reorder product W?
A) 39,000 units.
B) 2,250 units.
C) 58,500 units.
D) 9,230 units.
Correct Answer:
Verified
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