For a Given Item the Lead Time Is 1 Week

question 8

Multiple Choice

For a given item the lead time is 1 week, the on hand inventory is 50 units, demand is 20 units per week, safety stock is set at 3 weeks supply and the item is ordered every 2 weeks. The order quantity should be:

• A) 70 units
• B) 60 units
• C) 50 units
• D) 40 units
• E) 120 units

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Definitions:

Objectivity

The practice of basing decisions or conclusions on unbiased facts and evidence rather than personal feelings or opinions.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

Boundary Spanning

Activities undertaken by individuals or organizations to interact with and influence external stakeholders and environments.

Contingency

An uncertain event or condition that, if it occurs, may have a positive or negative impact on a project's objectives.