A firm has a planned usage rate of 20 units per day, a planned safety stock of 20 units, and an expected order lead time of 5 days. If the actual usage rate is 25 units per day, the firm will be out of stock
A) at no time in the order cycle.
B) for one-quarter of a day.
C) for 1 1/4 days.
D) for 2 1/4 days.

Question

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The Answer of A firm has a planned usage rate of 20 units per day, a planned safety stock of 20 units, and an expected order lead time of 5 days. If the actual usage rate is 25 units per day, the firm will be out of stock
A) at no time in the order cycle.
B) for one-quarter of a day.
C) for 1 1/4 days.
D) for 2 1/4 days.

A Firm Has a Planned Usage Rate of 20 Units