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Question
Tic Tac Electricals Ltd. manufactures switches and plugs in an industrial area in the state of Haryana. On average, they manufacture 2500 switches per day. Their raw material supplier is based in Punjab and takes 5 days to deliver the requirement once the order is received. Estimate the reorder level for Tic Tac Electricals Ltd.
Numerical
Solution
Reorder level = Lead time × Daily requirement
= 5 × 2500
= 12500 units
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