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If Average Demand for an Inventory Item Is 200 Units

Question 96

Multiple Choice

If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is


A) 100 units.
B) 200 units.
C) 300 units.
D) 600 units.
E) 700 units.

Correct Answer:

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