Demand for an Item Is 20 Units Per Week and Delivery

question 33

Multiple Choice

Demand for an item is 20 units per week and delivery lead time is 2 weeks.The safety stock is known to be 14 units.Using a P system,and assuming a P value of 3 weeks,what is the target inventory level (T) ?

• A)Less than 50
• B)Between 50 and 100 (including the values of 50 and 100)
• C)More than 100
• D)None of the above

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Definitions:

Price of Output

The amount of money that a producer receives for selling one unit of a product or service in the market.

Price of Inputs

The cost of resources used in the production of goods and services, including materials, labor, and overheads.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not affect future economic decisions.

Remodeling

The process of improving or updating the structure, layout, or appearance of an existing building or space.