A company has 10,000 units of a product on hand. Annual usage is 50,000 units. There are 250 working days in the year. The company has how many days of supply?
A company has 10,000 units of a product on hand. Annual usage is 50,000 units. There are 250 working days in the year. The company has how many days of supply?
The company uses 50,000 units annually and has 250 working days in a year, which means the daily usage is 50,000 units / 250 days = 200 units per day. With 10,000 units on hand, the days of supply is calculated as 10,000 units / 200 units per day = 50 days.
Days of supply = Units on hand / Daily usage Days of supply = 10,000 units / 200 units per day Days of supply = 50 days