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

question 13

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 purchased quantities, the average cycle 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:

Office

A room or set of rooms where business, professional, or administrative work is conducted.

Verbal Communication

The use of spoken words to convey messages, instructions, or ideas between individuals.

Presenting Ideas

The act of conveying concepts, plans, or proposals to others in a clear and persuasive manner.

One-On-One

A direct and private meeting between two individuals, typically used for feedback, coaching, or detailed discussions.