A retailer takes 4 days to process an order and the supplier takes 12 days to deliver merchandise.The retailer should begin to order merchandise how many days before the old inventory runs out?

Question

Quizplus · Accepted Answer

To avoid running out of inventory, the retailer needs to place an order in such a way that the merchandise arrives at least one day before the old inventory runs out. 
Total lead time = Processing time + Delivery time = 4 days + 12 days = 16 days
Therefore, the retailer should begin to order merchandise 16 days before the old inventory runs out. Hence, the correct answer is C).

A Retailer Takes 4 Days to Process an Order and the Supplier