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A business uses 65,000 units of an item every year, and works for 52 weeks per year. There is a delay of three weeks between placing an order for the item and receiving it.
What should be set as a reorder level to ensure that inventory arrives just as it is needed?
I calculated this as 65000/52= 1250
1250×3= 3750 is this correct?
Yes, that is correct.