Use the Following to Answer the Questions Below

question 203

Multiple Choice

Use the following to answer the questions below.
Shipments of Product A from a distribution center to a retailer are made in lots of 350.The retailer's average demand for A is 75 units per week.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.
-Refer to the instruction above.With the change in lead times,the pipeline inventory will:

• A)decrease by 75 units.
• B)increase by 50 units.
• C)decrease by 25 units.
• D)increase by 25 units.

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Definitions:

Possible Group Assignments

The various ways in which participants can be allocated to different groups or conditions in an experiment.

Subjects

Individuals or entities that are studied or observed in a research experiment or survey to collect data about them.

F Statistic

A ratio used in ANOVA tests that quantifies the amount of variation between groups compared to within groups.

Capital Intensity Ratio

A measure of the amount of capital needed per dollar of revenue, indicating the investment required for a company to maintain its current level of production.