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.

---

Definitions:

Bifurcation

The division of something into two branches or parts, often referred to in a biological context such as blood vessels or airways.

Hyperactive

Hyperactive describes a condition of having more energy and movement than is normal or desirable, often associated with attention deficit hyperactivity disorder (ADHD).

Hyper-

A prefix meaning above or excessive, used to describe conditions of overactivity or elevated levels (e.g., hypertension).

Dys-

A prefix in medical terms indicative of abnormal, difficult, or painful conditions.