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Sagot :
With 70 units of safety stock and an average weekly demand of 14 units for 5 working days in a week 25 days can be covered if the shipment from the supplier is delayed.
What is safety stock ?
Logisticians refer to a degree of excess stock as "safety stock" to reduce the danger of stockouts (a shortage of raw materials or packaging) brought on by erratic supply and demand. A sufficient safety stock level enables business activities to operate as planned. When demand, supply, or production yield are unknown, safety stock is kept as a precaution against stockouts.
A safety stock can be regarded as an additional supply of a product that is kept on hand to lessen the likelihood that it will run out. It serves as a buffer stock in the event that sales are higher than anticipated or that the supplier is unable to deliver the extra units by the scheduled date.
To solve the question :
Given,
Safety stock = 70 units
Average weekly demand for 5 working days will be 14 units
To calculate working days that can be covered :
(Safety stock / Average weekly demand) × working days
= (70/14) × 5
= 5 × 5
= 25 days
Hence, 25 days can be covered with the safety stock if the shipment from the supplier is delayed.
To know more about, safety stocks, visit :
https://brainly.com/question/13638496
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