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QUESTION
Fiber Technology, Inc., manufactures glass fibers used in the communications industry.
- Assuming stable usage of XL-20 each month, determine the reorder point for XL-20.
- Suppose that monthly usage of XL-20 fluctuates between 367 and 567 canisters, although annual demand remains constant at 5,600 canisters. What level of safety stock should the materials and parts manager keep on hand for XL-20? What is the new reorder point for the chemical?
