Question

In: Operations Management

Demand for hotdogs is 500 units per week. Lead time is one week. When inventory level...

Demand for hotdogs is 500 units per week. Lead time is one week. When inventory level reached 1500 units, the regional director orders 8 weeks of demand. Compute the average inventory.

A. 1000

B. 2000

C. 3000

D. 4000

E. None of the above

Demand for hamburgers is 400 units per week. Lead time is one week. When inventory level reached 1000 units, the regional director orders 6 weeks of demand. Compute the flow time.

A .1.5 weeks.
B. 3.5 weeks
C. 5 weeks
D. 4.5 weeks
E. 8 weeks

Solutions

Expert Solution

Average weekly demand (d) = 500 units

So 8 weeks of demand = 500 units x 8 = 4000 units

Therefore the order quantity (Q) = 4000 units

Average inventory = Q/2 = 4000/2 = 2000 units

So the answer is option B

keosha answered 2 years ago
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