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Management Studies

Question: Arms of Steel is an organization that sells weight training sets. The carrying cost for the AS1 model is $5 per set per year. To meet demand, Arms of Steel orders large quantities of AS1 seven times a year. The stockout cost for AS1 is estimated to be $50 per set. Over the past several years, Arms of Steel has observed the following demand during the lead time for AS1:

The reorder point for AS1 is 60 units. What level of safety stock should be maintained for the AS1 model?

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Strategic Management, Management Studies

Category:- Strategic Management
Reference No.:- M92765389

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