If usage rate is 500 units of raw material per day, safety stock is equal to 5 days of sales, re-order point is represented by 3500 units, find out the lead time in number of days.
The size of order is 500 tonnes. Holding cost is Rs 20 per tonne. Production per day is 0.500 tonnes. Demand per day is 0.450 tonnes. Stock-out cost per unit per annum is Re 1. Find the safety level of stock.
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