Jia’s Apple Farm uses 35 baskets each day to pack apples for shipping.
Jia’s Apple Farm uses 35 baskets each day to pack apples for shipping. It takes 5 days to receive a shipment of baskets after an order is placed and she would like a safety stock of 3 days in inventory.
At what level of inventory should Jia’s place an order for baskets?
ANSWER
Reorder point = 5 × 35 + 3 × 35 = 280 units
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