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Hansen Corporation Estimates That It Will Consume 400,000 Units of Part

Question 161

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Hansen Corporation estimates that it will consume 400,000 units of Part 303 in the coming year.The ordering cost for this unit is $3.20.Hansen Corporation wants to maintain a safety stock of 1,000 units,and its factory operates 200 days per year.What is the order point if the lead time is 2 days?

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The order point = (daily usage...

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