Use the following information to answer the next two questions
Distribution Center A Transit time: 1week Order Quantity 200 units
$\begin{array}{lccccc}
\text { Week } && 1 & 2 & 3 & 4 & 5 \
\text { Gross Requirements } && 150 & 125 & 125 & 100 & 150 \
\text { In Transit } && 200 & & & &\\text { Projected Available }&75\\text { Planned Order Release }
\end{array}$
-There will be a planned order release(s) in weeks:
A) 2 and 3
B) 1 and 2
C) 1 and 3
D) 1, 2 and 3
E) Intransit inventory will cover all the orders.

Question

Use the following information to answer the next two questions
Distribution Center A Transit time: 1week Order Quantity 200 units
 $\begin{array}{lccccc}
\text { Week } && 1 & 2 & 3 & 4 & 5 \
\text { Gross Requirements } && 150 & 125 & 125 & 100 & 150 \
\text { In Transit } && 200 & & & &\\text { Projected Available }&75\\text { Planned Order Release }
\end{array}$
-There will be a planned order release(s) in weeks:
A) 2 and 3
B) 1 and 2
C) 1 and 3
D) 1, 2 and 3
E) Intransit inventory will cover all the orders.

Quizplus · Accepted Answer

In week 1, there are 200 units in transit and a gross requirement of 150 units, leaving 50 units available for week 2. The gross requirement for week 2 is 125 units, which exceeds the available inventory, necessitating a planned order release in week 2 to meet this demand. Similarly, for week 3, another planned order release is needed to meet the gross requirement of 125 units, as the previous order would have been depleted by week 2's requirements. There's no need for a planned order release in week 1 since the in-transit inventory covers the gross requirements for that week, and the pattern of requirements suggests that additional orders will be needed in weeks 2 and 3 to maintain supply.

Use the Following Information to Answer the Next Two Questions