It is week 1 and there are currently 20 As in stock. We need 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 2 weeks, when and how large of an order should be placed to meet the requirement of 300 As?
A) Week 1, 300 As
B) Week 3, 40 As
C) Week 5, 40 As
D) Week 4, 40 As
E) Week 4, 300 As

Question

Quizplus · Accepted Answer

To meet the requirement of 300 As by the start of week 5, considering the current stock of 20 As and the scheduled receipts of 120 As each in weeks 3 and 4, an additional 40 As are needed. Since A has a lead time of 2 weeks, the order must be placed in week 3 to ensure the As are available by week 5.

It Is Week 1 and There Are Currently 20 as in Stock