Scenario 9.1 Shipments of Product a from a Distribution Center to a to a Retailer

question 54

Multiple Choice

Scenario 9.1
Shipments of Product A from a distribution center to a retailer are made in lots of 350. The retailer's average demand for Product A is 75 units per week. The lead time from distributor to retailer is 3 weeks. The retailer pays for the shipments when they leave the distributor. The distributor has agreed to reduce the lead time to 2 weeks if the retailer will purchase quantities of 400 per shipment instead of 350 units per shipment.
-Refer to Scenario 9.1. With the change in lead time, the pipeline inventory will:

• A) decrease by 75 units.
• B) increase by 50 units.
• C) decrease by 25 units.
• D) increase by 25 units.

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Definitions:

Customer Mapping Process

A strategic approach to understanding the journey of the customer with a business, from initial awareness to post-purchase interactions, aiming to improve customer experience.

Color-Blindness

The concept of ignoring racial differences and treating all individuals equally, without acknowledging existing racial disparities and inequalities.

Meritocracy

A system in which advancement within the social hierarchy is based on individual talent, effort, and achievement rather than on class privilege or wealth.

Policy Implications

The potential effects or outcomes that specific policies may have on a society, economy, or environment.