A firm manufactures an item which has high level of demand in the market: 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. Compute the Danger Level for the firm.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A firm manufactures an item which has high level of demand in the market:

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.

Compute the Danger Level for the firm.

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