Use the Following to Answer the Questions Below

question 124

Multiple Choice

Use the following to answer the questions below.
Shipments of Product X from a plant to a wholesaler are made in lots of 600.The wholesaler's average demand for X is 100 units per week.Lead time from plant to wholesaler is 4 weeks.The wholesaler pays for the shipments when they leave the plant.
-Refer to the instruction above.Which of the following situations results in the wholesaler's total cycle plus pipeline inventories amounting to 400 units?

• A)plant shipment lot size of 500 and plant-to-wholesaler lead time of 3 weeks
• B)plant shipment lot size of 400 and plant-to-wholesaler lead time of 3 weeks
• C)plant shipment lot size of 600 and plant-to-wholesaler lead time of 4 weeks
• D)plant shipment lot size of 400 and plant-to-wholesaler lead time of 2 weeks