Erico Inc, has the following details: Average lead time - 10 days Maximum lead time - 15 days Minimum lead time - 6 days Emergency purchases - 4 days Average consumption - 15 units per day Maximum consumption - 20 units per day. Required: Danger Level

Erico Inc, has the following details: Average lead time - 10 days Maximum lead time - 15 days Minimum lead time - 6 days Emergency purchases - 4 days Average consumption - 15 units per day Maximum consumption - 20 units per day. Required: Danger Level

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Erico Inc, has the following details:

Average lead time - 10 days

Maximum lead time - 15 days

Minimum lead time - 6 days

Emergency purchases - 4 days

Average consumption - 15 units per day

Maximum consumption - 20 units per day.

Required:

Danger Level

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