A Retailer Uses a 20-Unit Reorder Point Based on Assuming

question 75

Multiple Choice

A retailer uses a 20-unit reorder point based on assuming a 3-day lead time,a 5-day usage rate,and a 5-unit safety stock.In how many days will a stockout occur if the lead time becomes 7 days and the usage rate continues at 5 units per day?

• A)0
• B)2
• C)3
• D)4