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Jimmy's Egg Is a Specialty Restaurant Featuring 47 Different Kinds

Question 199

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Jimmy's Egg is a specialty restaurant featuring 47 different kinds of omelettes in three different sizes. They use 60 dozen cases of eggs a day that they order from an egg factory with a lead time of five days. One fine day they stock their chiller and note that there are only 25 dozen cases of eggs remaining. They have a backorder of 15 cases and an open order of 200 cases. What is their inventory position? Should they place an order?

Jimmy's Egg is a specialty restaurant featuring 47 different kinds of omelettes in three different sizes. They use 60 dozen cases of eggs a day that they order from an egg factory with a lead time of five days. One fine day they stock their chiller and note that there are only 25 dozen cases of eggs remaining. They have a backorder of 15 cases and an open order of 200 cases. What is their inventory position? Should they place an order?

Correct Answer:

verifed

Verified

IP = OH + SR - BO
IP = 25 + 200 - 15
IP ...

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