If Ballart Collectibles Inc.has a safety stock of 70 units and the average weekly demand is 21 units,how many days can be covered if the shipment from the supplier is delayed?
A)21 days
B)23.3 days
C)35 days
D)3.3 days

Question

Quizplus · Accepted Answer

To calculate the number of days that can be covered by the safety stock:
Safety Stock = Average Weekly Demand * Lead Time
Lead Time = Number of days delayed + Number of days for delivery
Let's assume that the delay is for 7 days, then:

Lead Time = 7 + (70/21) = 10.3 days (rounded up to 11 days)
Safety Stock = 21 * 11 = 231 units

Therefore, the company can cover for 23.3 days (231 units / 21 units per week) if the shipment from the supplier is delayed.