Carmel Company uses 1,470 units of a part each year. The cost of placing one...
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Carmel Company uses 1,470 units of a part each year. The cost of placing one order is $10; the cost of carrying one unit in inventory for a year is $6. The company works 294 days per year and it normally takes 5 days for merchandise to arrive. The maximum time for delivery has been 8 days. What would be the reorder point for Carmel without safety stock?
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