Table 13.5

-Use the information in Table 13.5.Which of the statements concerning item RST is TRUE? (Examine each answer independently.)
A) If the safety stock level were 30 units instead of 0 units, the planned receipt in week 7 would be 110 units.
B) If the scheduled receipt in week 2 were delayed until week 3, there would be a planned order release in week 1.
C) If the safety stock level was 20 units instead of 0 units, there would be a planned order release in week 2.
D) If the gross requirements for week 8 were 100 units instead of 60 units, the projected on-hand inventory for week 8 would be 0 units.

Question

Table 13.5
 
-Use the information in Table 13.5.Which of the statements concerning item RST is TRUE? (Examine each answer independently.)
A) If the safety stock level were 30 units instead of 0 units, the planned receipt in week 7 would be 110 units. 
B) If the scheduled receipt in week 2 were delayed until week 3, there would be a planned order release in week 1. 
C) If the safety stock level was 20 units instead of 0 units, there would be a planned order release in week 2. 
D) If the gross requirements for week 8 were 100 units instead of 60 units, the projected on-hand inventory for week 8 would be 0 units.

Quizplus · Accepted Answer

If the safety stock level was 20 units instead of 0 units, the total requirements for week 2 would be 30 units (10 units of gross requirements + 20 units of safety stock). However, the projected on-hand inventory for week 1 is only 10 units, so there would be a planned order release in week 1 to bring the on-hand inventory up to the safety stock level of 20 units.

Table 13.5 -Use the Information in Table 13.5.Which of the Statements Concerning