Question

In: Operations Management

which of the following statements will be true

For a given store, demand in Week 5 is 375, and on-hand inventory at the end of Week 4 is 450. If the manufacturing lead time for this particular item is two weeks, which of the following statements will be true?

a. The order release for Week 2 will be 450
b. The order release for Week 3 will be 0
c. The order release for Week 3 will be 375
d. The order release for Week 4 will be 0

Solutions

Expert Solution

Step 1

Order release controls the input of manufacturing. Order release connects the manufacturing planning system and the shop floor. The release plan should be with all minute details like the timeline, quantity to be released, units to be produced, and delivery dates.

Step 2

We have,

Demand for week 5 is 375

And available inventory at the end of week 4 is 450

Demand is less than supply.

As the lead time of manufacturing is 2 weeks, order release is 2 weeks prior should be zero, as available inventory is sufficient to satisfy the demand of weeks 5

 

b. The order release for Week 3 will be 0

Raffay answered 2 years ago
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