If the lead time is 1 week, the review period 1 week, the average demand 100 units per week and the safety stock is 50 units, the target level will be:
A) 150 units
B) 200 units
C) 250 units
D) 300 units
E) none of the above

Question

Quizplus · Accepted Answer

The target level is calculated as the sum of the demand during the lead time, the demand during the review period, and the safety stock. Therefore, it is (100 units/week * 1 week) + (100 units/week * 1 week) + 50 units = 250 units.

If the Lead Time Is 1 Week, the Review Period