It Is Week 1 and There Are Currently 20 as in Stock

question 9

Multiple Choice

It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As?

• A) Week 1, 300 A s
• B) Week 1, 40 A s
• C) Week 5, 40 A s
• D) Week 4, 40 A s
• E) Week 4, 300 A s

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Definitions:

Information System

An organized system for the collection, organization, storage, and communication of information; it typically involves people, technology, and processes.

Information Centralization

The practice of gathering and managing all relevant information within a single, centralized database or system to improve accessibility and decision-making.

Current Inventory

The existing stock of goods held by a business meant for sale or production.

Continuous Review Policy

A inventory management approach where stock levels are constantly monitored, triggering reorders as needed.