What would be the average inventory level for gas


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Q: A semiconductor manufacturer purchases enormous amounts specialty gases to be used in its manufacturing processes. Its order quantity for argon is 1,400 cylinders, and it places many orders during any given year. This manufacturer holds no safety stock because the supplier is very close and demand for this gas is flat.

Over a year's time (in the long run), what would be the average inventory level for this gas?

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