Consider the Following Conditions for an Item Used in the Hess

question 145

Multiple Choice

Consider the following conditions for an item used in the Hess Company's manufacturing process: On-hand inventory: 80 units
Open orders (scheduled receipts) : 100 units
Backorders: 20 units
Reorder point: 150 units
Quantity per order: 50 units
Which of the following statements best describes Hess's situation regarding inventory replenishment?

• A)No action is required,since Hess's inventory position is greater than the reorder point.
• B)Hess should order one lot of 50 units to cover its backorders.
• C)Because it is incurring backorders,Hess should increase its reorder point.
• D)Hess should place an order for 50 units,since their inventory position is less than the reorder point.

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Definitions:

Pons

A crucial structure in the brainstem that plays key roles in sleep and dreaming, arousal, and coordination of movement.

Brain Stem

The central trunk of the mammalian brain, connecting the brain to the spinal cord and responsible for controlling basic functions like breathing and heart rate.

Pons

A part of the brainstem that plays key roles in regulating breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Breathing

The process of inhaling and exhaling air to facilitate gas exchange with the internal environment, primarily by bringing in oxygen and flushing out carbon dioxide.