Engineering Board Exam Reviewer · Engineering Management · medium
A company orders 600 units at a time and keeps 100 units of safety stock. What is its average inventory?
- 300 units
- 700 units
- 400 units
- 350 units
Answer
C. 400 units
Solution
Average inventory = Q/2 + SS = 300 + 100 = 400 units.
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