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Author Question: All of the following are reasons why a company might carry a safety stock except: (Read 74 times)

bio_gurl

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Question 1

The only product of a company has an annual demand of 14,000 units. The cost of placing an order is $70 and the cost of carrying one unit in inventory for one year is $20. 

Required: 
Determine the economic order quantity.

Question 2

All of the following are reasons why a company might carry a safety stock except:
◦ a buffer against unexpected increases in demand
◦ a contingency against the uncertainty about lead time
◦ a strategy to lower the carrying cost of inventory
◦ a way of softening the impact of sudden unavailability of stock from suppliers


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Marked as best answer by bio_gurl on Mar 6, 2021

apple

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bio_gurl

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


zacnyjessica

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Reply 3 on: Yesterday
:D TYSM

 

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