Use the following to answer the questions below.
Shipments of Product X from a plant to a wholesaler are made in lots of 600.The wholesaler's average demand for X is 100 units per week.Lead time from plant to wholesaler is 4 weeks.The wholesaler pays for the shipments when they leave the plant.
-Refer to the instruction above.Which of the following situations results in the wholesaler's total cycle plus pipeline inventories amounting to 550 units?
A) plant shipment lot size of 400 and plant-to-wholesaler lead time of 2 weeks
B) plant shipment lot size of 500 and plant-to-wholesaler lead time of 3 weeks
C) plant shipment lot size of 400 and plant-to-wholesaler lead time of 3 weeks
D) plant shipment lot size of 600 and plant-to-wholesaler lead time of 4 weeks
Correct Answer:
Verified
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