Demand for an item is 20 units per week and delivery lead time is 2 weeks. The s

Question

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

Given the following weekly demand figures:

Week      Demand
1                20
2                60
3                30
4                20
5                40


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

Given the following weekly demand figures:

Week      Demand
1                20
2                60
3                30
4                20
5                40


Given the following weekly demand figures:

Week      Demand
1                20
2                60
3                30
4                20
5                40

Explanation / Answer

Q?/2 = 174/2 = 87

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