(SOLVED) Monitor Ltd uses 1680 tonnes of a chemical each year


Question Description:

$20

Monitor Ltd uses 1680 tonnes of a chemical each year in its manufacturing processes. Monthly demand for the chemical fluctuates between 110 and 160 tonnes. The lead time for each order is one month, and the economic order quantity is 260 tonnes.
Required:
1. Determine the safety stock required for the chemical.
2. Calculate the reorder point in tonnes for the chemical.

Answer

$20