If a Company Faces a 60-Day Lead Time on Orders

question 28

Multiple Choice

If a company faces a 60-day lead time on orders of a European faucet with an annual demand of 2,190 units, at what inventory level must it reorder to ensure sufficient supply to satisfy average demand?

• A) 6
• B) 45
• C) 60
• D) 120
• E) 360