question archive For Raw material A007, a company maintains a safety stock of 5,000 pounds

For Raw material A007, a company maintains a safety stock of 5,000 pounds

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For Raw material A007, a company maintains a safety stock of 5,000 pounds. Its average inventory (taking
into account the safety stock) is 15,000 pounds. What is the apparent order quantity (in lbs.)? *CO Format:
11,111

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Step-by-step explanation

average inventory=(beginning inventory+ending inventory)/2
Ending inventory= safety stock = 5000pounds

(X+5000)/2= 15,000
X= 25,000 lbs( This will be the order quantity)

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