It takes a retailer three days to process an order and the supplier an additional five days to deliver ordered merchandise.The retailer should begin to order new merchandise ________.
A) when the current inventory is at 15 units
B) at least two days before the old inventory runs out
C) at least eight days before the old inventory runs out
D) at least ten days before the old inventory runs out

Question

Quizplus · Accepted Answer

Since it takes a total of 8 days (3 days for processing and 5 days for delivery) to replenish inventory, the retailer needs to order new merchandise at least 8 days before the current inventory runs out to avoid stockouts.

It Takes a Retailer Three Days to Process an Order