Demand for a product is 400 units per week. Lead time is one week. When inventory...

Demand for a product is 400 units per week. Lead time is one week. When inventory level reached 1000 units, the material manager orders 6 weeks of demand. Compute the average inventory.

1000

2000

3000

1800

None of the above

Solutions

Expert Solution

Order Quantity = 6 weeks of demand

One week of demand = 400 units

6 weeks of demand = 400*6 = 2,400 units

Average Inventory = Order quantity/2 =2400/2 = 1200 units

None of the above is true

keosha answered 2 years ago

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